India-New Zealand Free Trade Agreement (FTA): Impacts, Benefits and Readiness

The India – New Zealand Free Trade Agreement, being a major step towards India's growing global trade architecture and its integration with high-income rule-of-law economies, has been announced for negotiation in March 2025. The proposed agreement aims to improve economic cooperation by achieving market access, services trade, investment, and orderly mobility for students and skilled workers.

The FTA is anticipated to provide substantive duty-free access for Indian exports to the New Zealand market while allowing for a balanced and sustainable approach on the part of India to protect its domestic sectors in areas such as the dairy industry as well as certain agricultural products. With the current bilateral trade in goods and services approximated at USD 2.4 billion for the year 2024, the Agreement will provide greater opportunities for Indian exporters as well as service providers.

Professional Utilities, being a prominent compliance and trade advisory house, assists the business community in preparing for and successfully utilizing the benefits of Free Trade Agreements in a full-service advisory and regulatory capacity

What is the India-New Zealand Free Trade Agreement

The India-New Zealand FTA is a bilateral trade agreement (BTA) that provides a predictable, transparent, and facilitative trading and investment environment. This is specifically emphasized as the enhancing and simplifying of trade barriers is the core objective of this BTA.

Included in its primary goals are:

  • Removal or reduction of import duties on the agreed goods
  • Market access and clarity in regulations
  • Increasing trade in services related to IT, education, health care, and professional services
  • Especially – long-term joint investment
  • Improving trade facilitation, customs efficiency, and regulatory cooperation
  • Student, skilled worker, and young professional career paths

From a more technical standpoint, the aim of the FTA is to make the bilateral trade of the Indian and New Zealand companies more cost-effective.

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India- New Zealand FTA: Key Outcomes and Latest Position

Based on the most recent updates from the government on negotiations:

  • New Zealand is expected to provide duty-free market access on all tariff lines relating to India’s current exports, subject to finalized schedules and dates of commencement.
  • India has indicated that it will offer market access on approximately 70% of tariff lines, covering a significant portion of bilateral trade value, while keeping 30% of the lines excluded to safeguard sensitive sectors.
  • The tariff concessions offered by India include:
    • No tariffs on 30% of the tariff lines.
    • Phased tariff elimination on selected products over periods of 3, 5, 7, or 10 years.
    • Limited tariffs and tariff-rate quotas (TRQs) on certain specified agricultural products.
  • Long-term objectives related to investment facilitation have been identified to strengthen economic relations, subject to final agreements and implementation frameworks.
  • The expected timelines for customs clearance are 48 hours for general cargo and 24 hours for express shipments and perishables.
  • Commitments have been made to expand the scope of Geographical Indication (GI) protection beyond wines and spirits in a timely manner.
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Significance of the India-New Zealand FTA

For India

  • Access to the high and stable income market increased
  • Increased export possibilities in manufacturing and service sectors
  • Increased involvement in supply chains in Oceania and the Pacific region
  • Predictable regulatory environment for exporters and investors

For New Zealand

  • Engagement with one of the world’s fastest-growing major economies
  • Services, investment, and skills collaboration for long-term prospects
  • Improved collaboration in supply chain and productivity-oriented business segments

On the whole, the agreement promotes long-term economic integration but not trade expansion.

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Mutual Benefits for Both Countries

Benefits for India

  • Right to duty-free access for all existing exports to New Zealand
  • Enhancing competitiveness in labor-intensive and value-added industries
  • Market expansion for Indian service providers
  • Investment facilitation and industrial cooperation
  • Customs clearance procedures made easier and faster

Benefits for New Zealand

  • Phased and selective market access in the Indian market
  • Agriculture cooperation related to productivity and best practices
  • Engagement in India's expanding service and investment sector
  • Institutional frameworks for continued economic interaction
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Sector-Wise Impact on Indian Industries

With "zero-duty access" expected from New Zealand, the following Indian export-oriented industries are likely to benefit:

  • Textiles and Apparel: Enhancing price competitiveness via removal of previous tariffs
  • Leather, Footwear, and Handicrafts: Labor-intensive sectors in exports
  • Engineering Goods and Auto Components: Improved market access and clearance processes
  • Chemicals, Plastics, and Industrial Products: Greater competitiveness in manufactured inputs and products
  • Pharmaceuticals and Medical Devices: Simplified regulatory processes for rapid entry into the market

The actual benefits are subject to the classification of HS, Rules of Origin, and procedural requirements being fulfilled.

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Need Expert Support to Leverage the India-New Zealand FTA

Professional Utilities supports exporters, manufacturers, and service providers in:

  • Product eligibility assessment under FTA
  • Origins analysis and compliance
  • Certificate of Origin support
  • HS classification and customs documentation
  • Advisory on TRQs, phased tariff schedules, and sectoral conditions

Get your free consultation to assess your FTA readiness and export opportunities.

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Fees for India–Oman CEPA Certificate of Origin Registration

The total cost of registering the India–New Zealand FTA Certificate of Origin, including professional charges, is ₹3,208. The registration remains valid for up to 12 months from the date of issuance. Exporters may also apply for re-issuance once the validity expires. The fee can be broken down as follows:

Particulars Fees
Government Fee ₹ 708
Application Fee ₹ 2,000
One-time Registration Fee ₹ 500
Total Fee ₹ 3,208

Get Expert Consultation

Note:The fees are exclusive of GST. The validity of the Certificate of Origin application is up to 12 months from the date of issuance.

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Mobility, Education, and Services Opportunities

The FTA focuses heavily on services trade and people-to-people mobility, consistent with respective national laws and finally agreed specific commitments:

Student Mobility

  • 20 hours per week right to work during study time
  • Post-study work options (as proposed)
  • Up to 3 years for eligible STEM Bachelor’s and Master’s graduates
  • Up to 4 years for PhD graduates

Skilled Employment Pathways

  • A proposed Temporary Employment Entry (TEE) visa route for skilled Indian professionals
  • Visa numbers and quotas are in discussion and depend on current immigration policy
  • Up to 3 years of stay in the selected sector

Working Holiday Visas

  • Proposed annual quota requiring domestic notification
  • Multiple entry validity for 12 months

Services Trade

Commitments in a variety of service sectors are expected to help Indian companies expand globally.

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Trade Facilitation and Compliance Framework

Successful FTA implementation is dependent on having a strong trade facilitation and compliance system:

  • Streamlined and digital-friendly customs formalities
  • Timelines for clearance (48/24 hours)
  • Clear Rules of Origin to avoid evasive practices
  • SPS and technical measures relating to health and safety
  • Transparency and information exchange regarding regulation

Exporters need procedural correctness in order to prevent the delay or forgoing of preferential treatment.

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How to Avail Benefits under the India-New Zealand FTA

In this respect, a business should exercise the benefits accruing to it under an FTA by:

  • Confirm eligibility of goods or services
  • Comply with Rules of Origin
  • Obtain a valid Certificate of Origin from relevant, designated bodies
  • Maintain accurate HS classification and customs documentation
  • Track TRQs, phase-in schedules, and sector-specific conditions
  • Monitor official notifications during implementation

In fact, professional guidance proves to be particularly necessary in the case of MSMEs and first-time exporters.

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Conclusion

The India-New Zealand Free Trade Agreement, or FTA, is a highly significant enhancement in the trade diplomacy efforts of India, which is likely to provide broad-based benefits in areas such as trade, investment, and mobility. The major expected pluses of this agreement for the Indian economy are that its present exports will enjoy zero customs duties in New Zealand, and its domestic sectors will be protected.

For companies, exporters, and professionals, the agreement presents new avenues for growth, and for businesses and professionals, this is made possible provided there is adherence to the necessary procedural measures.

Professional Utilities plays an integral part of helping companies unlock policy frameworks and convert them into effective outcomes. Being experts in FTA advisory, trade compliance, and document services, we are able to help our clients unlock benefits of international trade agreements effectively. Get in touch with us to become entirely ready to make the most of the India-New Zealand Free Trade Agreement.

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Frequently Asked Questions (FAQs)

What is the India-New Zealand Free Trade Agreement (FTA)?

The India - New Zealand FTA, being a proposed bilateral FTA, looks to ease trade barriers and increase cooperation on trade in goods, services, investment, and people movement between India and New Zealand.

When was the India-New Zealand FTA announced for negotiation?

The India-New Zealand FTA was announced for the start of negotiations in March 2025.

How will Indian exporters benefit from the India–New Zealand FTA?

Indian exporters are likely to get support in the form of duty-free access to the markets in New Zealand, easier customs clearance processes, and regulatory certainty.

What role do Rules of Origin play under the India–New Zealand FTA?

Rules of Origin regulate the goods that qualify for preferential tariff treatment and need to be followed in order for a company to qualify for a tariff benefit in the FTA.

Does the India–New Zealand FTA include services and mobility provisions?

Yes, the FTA does highlight the trade in services aspect. The trade agreement provides mechanisms for the mobility of students, professional workers, and working holidaymakers.

How can businesses prepare to avail benefits under the India–New Zealand FTA?

Enterprises are advised to verify product eligibility, confirm origin consistency, procure Certificates of Origin, and obtain expert advisory services.

What is the India–Oman CEPA and how does it benefit businesses?

The India–Oman Comprehensive Economic Partnership Agreement (CEPA) is a proposed trade agreement aimed at enhancing bilateral trade, investment, and economic cooperation between India and Oman. It offers benefits such as reduced customs duties, improved market access, and smoother trade procedures for exporters and importers. Complete details and business implications are available at India–Oman CEPA Free Trade Agreement.

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