Piyush Goyal
The India–New Zealand Free Trade Agreement (FTA), being signed on Monday, marks a defining milestone in India’s engagement with the developed world. It reflects a decisive advancement in Prime Minister Narendra Modi’s vision of transforming global economic partnerships into tangible gains for farmers, women, youth, and job-creating industries.
The FTA follows a series of landmark trade pacts with major developed economies, including the United Kingdom and EU. These agreements strengthen India’s position in global markets and provide exporters with a competitive edge in some of the world’s most lucrative economies, even amid ongoing global uncertainty and volatility.
A Strong Push for Exports and Jobs
At the core of the win-win agreement is New Zealand’s commitment to immediately eliminate tariffs on all Indian products, removing a significant barrier in a market where our key exports currently face duties of 10%.
This is a major boost for labour-intensive sectors such as garments, carpets, yarn, fabrics, footwear, bags, belts, automobile components, machinery, tools, gems and jewellery, and handicrafts. These job-creating industries form the backbone of India’s MSME ecosystem and will benefit from price competitiveness and market access. This will boost exports and trigger large-scale employment generation across manufacturing clusters, artisan communities, and small enterprises.
This agreement reflects the broader philosophy guiding India’s trade policy since the Modi government was formed in 2014. It is rooted in inclusivity, empowerment, and shared prosperity. Trade is not treated as a tool for national transformation that benefits farmers, workers, women, youth, and the underprivileged.
Nari Shakti
A defining feature of this agreement is that it is India’s first women-led FTA. Nearly the entire negotiating team comprised women. These include the chief negotiator, deputy chief negotiator, sectoral leads, and India’s ambassador to New Zealand.
This milestone reflects the growing importance of women in the Modi government. It aligns with broader efforts to enhance women’s participation in governance, leadership, and decision- making across sectors, reinforcing the idea of Nari Shakti as a driver of national development.
Farmers First
The FTA has been carefully structured to enhance agricultural productivity. New Zealand will support Agriculture Productivity Action Plans for kiwi, apples, and honey. These initiatives include improved planting material, research collaboration, capacity building for growers, orchard management practices, post-harvest improvements, food safety systems, and the establishment of Centres of Excellence. Projects for apple cultivators and sustainable beekeeping practices will enhance production and quality standards, which will increase farm prosperity.
At the same time, India has firmly protected its core agricultural interests. Sensitive products such as dairy (including milk, cream, whey, yoghurt, and cheese), vegetables like onions, chana, peas, corn, almonds, sugar, and certain oils and fats have been excluded from tariff concessions. This ensures that domestic farmers remain insulated from disruptive import competition. Protecting the interests of farmers and fishermen has been central to India’s approach in all trade negotiations.
Youth and Professionals
A major pillar of the agreement is enhanced mobility for students and skilled professionals, creating new global pathways for India’s youth.
For the first time in any bilateral trade agreement, New Zealand has introduced a structured framework for Indian student mobility and post-study work opportunities. There are no numerical caps on Indian students. Students will be allowed to work at least 20 hours per week during studies, while post-study work rights extend up to three years for STEM graduates and up to four years for doctoral scholars.
The agreement introduces a Temporary Employment Entry Visa pathway for up to 5,000 Indian professionals at any given time, allowing stays of up to three years in sectors such as IT, engineering, healthcare, education, construction, and select traditional fields like yoga, Ayurveda, Indian cuisine, and music education.
In addition, a Working Holiday Visa scheme will allow 1,000 young Indians annually to live and work in New Zealand for up to 12 months, strengthening cultural exchange and global exposure.
Investment and Innovation
New Zealand has committed to facilitating USD 20 billion in investment into India. This is expected to support manufacturing, infrastructure, renewable energy, digital services, innovation ecosystems, and employment generation.
A rebalancing clause has been incorporated to ensure accountability, allowing India to take corrective measures if investment commitments fall short. The agreement also encourages collaboration in research, technology transfer, skill development, and innovation-driven sectors, ensuring that trade is complemented by long-term developmental partnerships.
Trade Strategy
The India–New Zealand FTA reflects a clear and confident trade strategy of partnering with developed economies that open meaningful market access for India’s labour-intensive sectors while respecting domestic sensitivities.
India today negotiates from a position of strength and credibility. Unlike earlier decades, when trade agreements often exposed vulnerable sectors without adequate safeguards, current negotiations ensure that agriculture, dairy, and other sensitive areas remain fully protected.
As India deepens its engagement with advanced economies, trade agreements with the developed world stand as a powerful example of how trade policy can be aligned with national development goals, ensuring inclusive growth and long-term economic resilience on the path to Viksit Bharat 2047.
(The author is Union Minister for Commerce and Industry)
