Services sector was a key focus area under the recently concluded Free Trade Agreement (FTA) between India and New Zealand. Despite having a merchandise trade surplus of $123.97 million with New Zealand in 2024-25, India’s service imports lagged behind those of New Zealand. The government hopes the FTA would shift the balance in India’s favour as the trade pact allows India market access for 118 services sectors in New Zealand.
India had a service trade deficit of $294.2 million. According to New Zealand government data, India’s services exports to New Zealand were $255.8 million in FY2025, while services imports reached $550 million. Under the FTA, India can not only tap conventional service sectors like IT, banking, healthcare, rather sectors like Ayurveda, yoga and other traditional services are likely to be exported too.
New Zealand has assured market access commitments to India in about 118 services sectors that include key sectors like computer related services, professional services, audio visual services, other business services, telecommunication services, construction services, distribution services, education services, environmental services, financial services, tourism and travel related services, etc. and Most-Favoured Nation (MFN) Commitment in about 139 sub-sectors which include major interests areas of India.
New Zealand has also signed an Annex on health and traditional medicine services to facilitate trade in health-related services and traditional medicine services.
New Zealand’s commitment to ease the immigration and visa approval process for Indians is likely to boost service exports. “New Zealand’s Indian diaspora of over 300,000 people—about 5% of its population—provides a strong bridge for trade and investment. Easier visas, faster student pathways and lower education costs could further boost services trade,” said Ajay Srivastava, founder, Global Trade Research Initiative (GTRI).
Banking and financial service has also been one of the major areas of focus. India is aiming to import digital payment services. The Department of Financial Services on Tuesday said that both the countries are working to develop domestic payments interoperability and supporting real-time cross-border remittances and merchant payments through integrated Fast Payment Systems (FPS). This provision aims to create market opportunities for Indian payment service providers and leverages India's technological expertise in digital payment systems such as UPI and NPCI. Alongside, India will also get into back-office and financial services support functions in New Zealand.