India and New Zealand signed a comprehensive Free Trade Agreement (FTA) on 27 April 2026, following the conclusion of negotiations in December 2025. The agreement covers 20 chapters, including trade in goods, services, investment, dispute settlement, and legal provisions. New Zealand has committed to invest $20 billion in India over the next 15 years, while India secured duty-free access for all its exports to New Zealand. The FTA also introduces new mobility pathways for professionals, students, and young workers.According to Hindustan Times, the FTA guarantees at least 5,000 Temporary Employment Entry Visas for Indian professionals in skilled occupations, allowing stays of up to three years. The agreement eliminates 100 percent of duties on Indian exports to New Zealand, providing significant benefits to sectors such as textiles, leather, and automotive components.As reported by Financial Express, the FTA introduces a Working Holiday Scheme for 1,000 Indians aged 18 to 30, enabling them to travel and work in New Zealand for up to 12 months. Indian students will be allowed to work up to 20 hours per week during their studies and may be eligible for post-study work permits of up to four years, depending on their qualification level.As The Indian Express stated in an article, New Zealand Prime Minister Christopher Luxon described the FTA as a “once-in-a-generation agreement” that will double bilateral trade to $5 billion within five years. The agreement is expected to bring unprecedented access for New Zealand exporters to the Indian market, while Indian companies will benefit from duty-free entry into New Zealand.Analysis showed that the FTA excludes sensitive products such as dairy, certain vegetables, and specific oils and fats from tariff concessions, protecting India’s domestic agricultural sector. New Zealand will receive immediate tariff elimination on 30 percent of tariff lines, including sheep meat, wool, and metal scraps, while India has offered calibrated market access across 70 percent of tariff lines.The agreement includes cooperation in agriculture, with both countries establishing centres of excellence for apples, kiwifruit, and honey production as coverage revealed. The FTA also features a rebalancing clause, allowing India to take corrective measures if investment commitments are not met.“Today this Free Trade Agreement is about building trade around people and launching opportunities – for our farmers, for our entrepreneurs, for our students, for our Women and for our innovators,” Commerce Minister Piyush Goyal said, as quoted in multiple sources.Negotiations for the FTA were led by a predominantly women team from India, marking the country’s first women-led FTA as reporting indicated. The team included the chief negotiator, deputy chief negotiator, sectoral leads, and India’s ambassador to New Zealand, reflecting the government’s emphasis on women’s leadership in trade policy.In terms of implementation, the FTA will come into force after ratification by both countries. In India, this is an executive process, while in New Zealand, the agreement must be reviewed by the Parliament’s foreign affairs, defence, and trade committee, followed by a national interest analysis and public consultation as details emerged. The ratification process in New Zealand is expected to take at least six months.Key sectors benefiting from the FTA include garments, carpets, machinery, gems and jewellery, and handicrafts, which are expected to see increased exports and job creation according to recent updates. The agreement also encourages collaboration in research, technology transfer, and skill development, supporting long-term developmental partnerships between the two countries.“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,” the Commerce Ministry stated.Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.