India and New Zealand are set to sign a long-awaited free trade agreement (FTA) on Monday, marking a significant milestone in bilateral economic ties and broadening cooperation beyond merchandise trade into mobility, investment, education and traditional medicine.
Ahead of the formal signing in New Delhi, Commerce and Industry Minister Piyush Goyal and New Zealand Trade and Investment Minister Todd McClay on Sunday held an industry interaction in Agra, pitching the agreement as a “comprehensive partnership” rather than a conventional tariff-cutting pact.
The agreement, concluded in a record nine months since negotiations were launched in March 2025, is expected to provide duty-free access for 100 per cent of Indian exports to New Zealand from the date of implementation, including key labour-intensive sectors such as leather and footwear.
Officials said the pact will cover market access, agricultural productivity, investment facilitation, talent mobility, tourism and people-to-people ties, while also opening fresh opportunities for Indian MSMEs, professionals and students.
Speaking at the industry outreach, Goyal urged businesses to look beyond tariff gains and tap opportunities in education, sports, pharma, AYUSH and investment under the agreement. McClay described the pact as among the “highest quality” FTAs signed by New Zealand and reaffirmed India’s strategic importance.
The run-up to the signing saw strong interest from industry, particularly from Agra’s leather and footwear sector, which accounts for nearly 75 per cent of India’s leather footwear production. With tariffs on leather and footwear exports to New Zealand set to drop from 5 per cent to zero, the industry sees the pact helping support ambitions to scale the sector to USD 50 billion by 2030 through higher-value manufacturing and global sourcing.
The pharmaceutical and medical devices sectors have also welcomed provisions aimed at faster regulatory approvals, including acceptance of Good Manufacturing Practices and Good Clinical Practices inspection reports from comparable international regulators, which could lower compliance costs and speed market access.
A dedicated chapter on health and traditional medicine, including AYUSH — a first for both countries in an FTA — is also expected to boost cooperation in wellness and related sectors.
The agreement is seen as complementing India’s broader trade push as New Delhi accelerates efforts to conclude high-quality trade deals with strategic partners.
Bilateral trade between India and New Zealand has remained modest, but policymakers in both countries see the pact as a platform to significantly deepen economic engagement, encourage joint ventures and expand collaboration across sectors.