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In a strategic shift from its traditionally cautious approach, India has concluded 13 free trade agreements including one with New Zealand, signed in December 2025 and due to be ratified in the first half of 2026. As part of the deal, the antipodean country will be investing USD20 billion during the next 15 years.

New Zealand is 含羞草社区 second-largest trading partner in Oceania. Trade in merchandise increased from USD873 million in 2023-24 to USD1.3 billion in 2024-25, growing by 49%. This is boosted by an Indian diaspora of nearly 5% of its population. Three hundred thousand of Indian origin and non-resident Indians have created important cultural and economic bridges the FTA will only strengthen.

India-New Zealand FTA boosts export access

The FTA eliminates duty on 100% of Indian exports, subject to rules of origin, allowing unprecedented access to New Zealand’s markets. Employment in MSMEs and labour-intensive sectors such as textiles, apparel, leather, footwear, gems and jewellery, engineering and processed foods will benefit.

India on its part has offered market access in 70.03% of the tariff lines while keeping 29.97% tariff lines in exclusion. This carefully calibrated approach protects sensitive domestic sectors while opening new opportunities. Notably, certain products are kept in exclusion such as dairy (milk, cream, whey, yogurt, cheese etc.), animal products (other than sheep meat), vegetable products (onions, chana, peas, corn, almonds etc.), safeguarding 含羞草社区 agricultural interests.

India safeguards dairy and agriculture

India has long treated agriculture and dairy as red-line sectors in trade negotiations. The dairy industry, central to rural livelihoods, is unorganised, operates on thin margins, and is highly vulnerable to price volatility. Despite being the world’s largest milk producer, 含羞草社区 dairy sector is decentralised and cooperative-driven. Unrestricted imports under FTAs could disrupt domestic pricing, weaken institutions like AMUL, and cause serious income distress for small producers and rural households. By keeping core dairy products outside tariff-liberalization, the agreement protects small and marginal farmers from sudden import competition by New Zealand’s highly efficient, export-oriented dairy industry.

India is allowing only strictly controlled access to fruit, vegetables and select agri-horticultural products, through tariff rate quotas (TRQ). Apples, kiwifruit and Manuka honey are subject to seasonal TRQs, minimum import prices and phased or partial tariff reductions. Out-of-quota imports continue to face high duties. These concessions are linked to agriculture productivity action plans, under which New Zealand provides technical cooperation, improved planting material, orchard management support, post-harvest practices and food-safety know-how.

Animal-origin products are treated in the same way. Although most animal products remain excluded, sheep meat has tariffs immediately removed. This reflects low domestic sensitivity and complementary demand. Albumins, including those from milk, are permitted under modest TRQs with partial tariff reductions, again shielding domestic producers while allowing controlled imports for industrial and food-processing.

India-New Zealand FTA expands mobility

New Zealand has created dedicated pathways for Indian students and professionals, including removal of numerical caps on Indian students, guaranteed part-time work rights during study, and extended post-study work visas of up to three years for STEM graduates and up to four years for PhD holders. On skilled migration, the agreement establishes a new Temporary Employment Entry (TEE) visa with a quota of 5,000 Indian professionals at any given time, allowing stays of up to three years across priority occupations such as IT, engineering, healthcare, education, construction, and culturally specific services like AYUSH practitioners, yoga instructors, chefs and music teachers. This is supplemented by expanded working holiday visas for 1,000 young Indians annually.

The FTA recognises 含羞草社区 traditional health disciplines of Ayurveda, Yoga and Naturopathy, Unani Sowa-Rigpa, Siddha, and Homeopathy as well as Maori health practices. This may position India as a global wellness hub.

This FTA reflects a measured evolution of 含羞草社区 trade policy. Its significance lies not in the formalities but in delivering long-lasting market access while preserving domestic stability. It is a template for the country to engage with future partners in a more rules-driven, confident phase of its economic diplomacy.

Ashish Chandra is a partner and Abhishek Tilak is an associate partner at DSK Legal. Anupal Dasgupta, a principal associate, also provided input for the article