New Zealand, India Seal $20 Billion Investment Deal

By John Pranay (Editor)

A free trade agreement (FTA) between India and New Zealand has been finalized, providing 100% duty-free access for Indian exports to New Zealand. The deal also includes investment commitments of $20 billion and new visa pathways. The agreement is expected to boost economic engagement between the two countries, with a target to double bilateral trade by 2030.

The negotiations for the FTA were concluded in nine months, with five rounds of talks and several in-person and virtual sessions. The agreement covers goods, services, investment, rules of origin, customs facilitation, technical barriers to trade, and sanitary and phytosanitary measures. Indian exports to New Zealand are dominated by pharmaceuticals, textiles, engineering goods, and information technology services, while imports from New Zealand comprise agri-products such as wool, fruits, and dairy-related items.

• December 2025: India and New Zealand finalize a comprehensive free trade agreement (FTA) after nine months of negotiations.

• 2024-25: Trade between India and New Zealand stands at $1.3 billion, with India exporting $711 million and importing $587 million.

• May 2025: India concludes a free trade agreement with the UK.

• July 2025: India signs the FTA with the UK.

• Week of December 2025: India concludes a free trade agreement with Oman.

• Monday, December 2025: Indian Prime Minister Narendra Modi holds a phone conversation with his New Zealand counterpart Christopher Luxon, expressing confidence in doubling bilateral trade over the next five years.

This is not the first free trade agreement for India in 2025. In May, India concluded a comprehensive free trade agreement with the UK, and last week, it signed a deal with Oman. These agreements demonstrate India's push to shed its protectionist image by lowering trade and non-trade barriers. However, the dairy sector remains a sensitive area, with India shielding its interests in the New Zealand agreement.

The India-New Zealand FTA is part of a broader trend of increasing economic engagement between India and the Pacific region. The agreement aims to correct the existing trade imbalance between the two countries by easing tariff and non-tariff barriers and encouraging two-way investment. With a target to double bilateral trade by 2030, the FTA is expected to support India's broader Indo-Pacific economic strategy and provide a stable platform for a more diversified economic relationship.

This agreement suggests that India is willing to engage with the Pacific region on a deeper level, leveraging its economic weight to drive growth and investment. However, the dairy sector remains a contentious issue, with India's protectionist stance potentially limiting the agreement's impact on trade volumes. Crucially, this overlooks the broader implications of India's economic engagement with the Pacific, which may have significant consequences for regional dynamics and global trade patterns.

Overall, the medium-term sentiment around this story is Bullish.

1. India-New Zealand FTA: Business, Trade & Market Access FAQs for Exporters and Investors — https://www.india-briefing.com/news/india-new-zealand-fta-business-trade-faqs-41527.html/

2. India, New Zealand conclude fast-track FTA negotiations; deal to be signed later — https://www.livemint.com/economy/india-new-zealand-conclude-fta-negotiations-deal-to-be-signed-later-11766382598732.html

3. New Zealand agreement: 3rd trade deal by India this year - What's the status for others? — https://theprint.in/india/new-zealand-agreement-3rd-trade-deal-by-india-this-year-whats-the-status-for-others/2811230/

Methodology: This analysis combines real-time data aggregation from manually selected global sources with advanced AI synthesis, engineered to provide neutral and data-driven insights.