India and New Zealand today signed a landmark Free Trade Agreement (FTA) at Bharat Mandapam in New Delhi, marking a significant step in deepening economic and strategic ties between the two nations while creating expanded opportunities for trade, investment, and student mobility.
The agreement was signed by Union Commerce and Industry Minister Piyush Goyal and New Zealand’s Trade and Investment Minister Todd McClay in the presence of senior officials, business leaders, and a high-level delegation from New Zealand that included Members of Parliament and representatives of over 30 companies.
Described as a “historic milestone” by New Zealand Prime Minister Christopher Luxon, the agreement is expected to unlock new opportunities across sectors, boost exports, and strengthen cooperation in areas such as agriculture, innovation, and services. Luxon said the deal would expand market access while reinforcing a shared commitment to rules-based trade and closer people-to-people ties.
Calling the agreement a “once-in-a-generation opportunity,” McClay said it would generate employment, support exporters, and unlock significant economic potential for both countries. He noted that more than 40 representatives from New Zealand, including exporters and industry leaders, attended the signing ceremony, underlining the importance of the pact.
The FTA aims to enhance bilateral trade by reducing barriers, improving market access, and establishing predictable trade rules. It is also expected to benefit businesses of all sizes, including small and medium enterprises, by creating a more enabling trade environment.
A key highlight of the agreement is its strong focus on mobility and skills. It introduces a new Temporary Employment Entry (TEE) visa pathway for Indian professionals in skilled sectors, allowing up to 5,000 visas at a time with stays of up to three years. In a first for New Zealand, the deal also creates a dedicated framework for student mobility with India, removing caps on Indian students and allowing them to work at least 20 hours per week during their studies.
The agreement further provides extended post-study work opportunities—up to three years for STEM graduates and up to four years for doctoral candidates—offering clearer global career pathways for Indian students.
Minister Goyal said the agreement reflects India’s growing engagement with developed economies and aligns with Prime Minister Narendra Modi’s vision of expanding global partnerships. He highlighted that the pact would empower farmers, entrepreneurs, women-led enterprises, and MSMEs, while also boosting exports and innovation. He also pointed to a proposed $20 billion investment commitment from New Zealand as a sign of confidence in India’s economic growth.
Officials noted that the agreement builds on strong cultural and historical ties between the two nations, including a significant Indian diaspora that makes up around 6% of New Zealand’s population and contributes across sectors such as business, education, and public life.
Bilateral trade between India and New Zealand currently stands at approximately $1.3 billion, with New Zealand being India’s second-largest trading partner in the Oceania region. With the implementation of the FTA, trade volumes are expected to grow further, supported by improved access and deeper economic integration.
