India and New Zealand will sign a much-anticipated free trade agreement (FTA) on Monday, marking an important milestone in bilateral economic ties and expanding cooperation beyond trade in goods to mobility, investment, education and traditional medicine.
Ahead of the official signing in New Delhi, Trade and Industry Minister Piyush Goyal and New Zealand Trade and Investment Minister Todd McClay held an industry interaction in Agra on Sunday, pitching the agreement as a “comprehensive partnership” rather than a conventional tariff reduction pact.
The deal, completed in a record nine months since negotiations began in March 2025, is expected to provide duty-free access to 100 percent of Indian exports to New Zealand from the date of implementation, including key labor-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 connectivity, while also opening up new opportunities for Indian MSMEs, professionals and students.
Speaking at the industry outreach, Goyal urged businesses to look beyond tariff benefits and tap opportunities in education, sports, pharmaceuticals, AYUSH and investment under the agreement. McClay described the pact as one of the “highest quality” FTAs signed by New Zealand and reaffirmed India’s strategic importance.
The signing saw a lot of interest from the industry, especially from Agra’s leather and footwear sector, which accounts for nearly 75 percent of India’s leather footwear production. With tariffs on New Zealand leather and footwear exports set to drop from 5 per cent to zero, the industry sees the pact helping to support ambitions to grow the sector to $50 billion by 2030 through higher value manufacturing and global sourcing.
The pharmaceutical and medical device sectors have also welcomed provisions aimed at faster regulatory approvals, including the acceptance of GMP and GMP inspection reports from comparable international regulators, which can reduce compliance costs and accelerate 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 welfare and allied sectors.
The deal is seen as complementary to India’s broader trade push as New Delhi accelerates efforts to strike 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 cooperation across sectors.
