Archive · 24 Dec 2025
India-New Zealand FTA Concludes Amid Controversy
India and New Zealand have signed a big trade deal to help their economies grow.
The deal makes it cheaper for New Zealand to sell things to India and for India to sell things to New Zealand.
New Zealand will also invest a lot of money in India over the next 15 years.
However, not everyone in New Zealand is happy with the deal.
Some people think it gives too much to India, especially in allowing more Indian workers to come to New Zealand.
They also think the deal doesn't do enough to help New Zealand's dairy farmers.
Despite these disagreements, both countries hope the deal will help them trade more and create more jobs.
India and New Zealand have concluded a Free Trade Agreement (FTA) to boost bilateral trade, investment, and innovation.
The FTA reduces or eliminates tariffs on 95% of New Zealand's exports to India and provides duty-free access for all Indian exports to New Zealand.
New Zealand has committed to investing USD 20 billion in India over the next 15 years as part of the deal.
The agreement covers various sectors, including IT-ITES, finance, education, tourism, audio-visual services, agriculture, and dairy.
New Zealand's Foreign Minister Winston Peters has criticized the FTA, describing it as 'neither free nor fair' and expressing concerns about immigration provisions and the lack of benefits for the dairy sector.
- Who
- Prime Minister Christopher Luxon (New Zealand) and Prime Minister Narendra Modi (India)
- What
- Conclusion of a Free Trade Agreement (FTA) between India and New Zealand
- When
- December 22, 2025
- Where
- India and New Zealand
- Why
- To boost trade, investment, innovation, and shared opportunities between the two countries, despite controversies over immigration and dairy exports
Supporters of the FTA
Opponents of the FTA
Immigration Provisions
Supporters of the FTA
The FTA provides new opportunities for Indian students and professionals, including extended post-study work visas and a dedicated Temporary Employment Entry (TEE) Visa pathway.
Opponents of the FTA
The immigration provisions are seen as too lenient, potentially increasing migration at a time when New Zealand's labor market is tight.
Dairy Exports
Supporters of the FTA
The FTA offers improved access to various sectors, including agriculture, with Indian products like fruits, vegetables, coffee, spices, and processed foods gaining better access to New Zealand markets.
Opponents of the FTA
The FTA is criticized for not securing meaningful benefits for New Zealand's key dairy export sectors, making it hard to defend to New Zealand farmers and rural communities.
Trade Benefits
Supporters of the FTA
The FTA is expected to double bilateral trade within five years, with New Zealand gaining duty-free access for 95% of its exports to India and India gaining duty-free access for all its exports to New Zealand.
Opponents of the FTA
The FTA is considered a bad deal for New Zealand, as it gives too much away, especially on immigration, without securing enough benefits in return for New Zealanders.
- Countries Involved
- India and New Zealand
- Tariff Reduction
- 95% of New Zealand exports to India
- Investment Commitment
- USD 20 billion by New Zealand in India over 15 years
- Sectors Benefited
- IT-ITES, finance, education, tourism, audio-visual services, agriculture, dairy, horticulture, pharmaceuticals, textiles
- Negotiation Duration
- 9 months
- Key Figures
- Prime Minister Christopher Luxon (New Zealand), Prime Minister Narendra Modi (India), Foreign Minister Winston Peters (New Zealand)
- Bilateral Trade (2024-25)
- USD 1.3 billion
- Dairy Exports (2025)
- USD 13.94 billion (30% of New Zealand's total goods exports)
Sources
"Potential Gain For Exporters": New Zealand PM Lauds FTA With India
'Neither Free Nor Fair': New Zealand Foreign Minister Opposes Trade Pact With India
India, New Zealand wrap FTA talks, aim to double trade in five years
‘India FTA a bad deal’: New Zealand coalition minister warns of job risks and dairy losses
Dairy excluded as India New Zealand ink free trade agreement - Telegraph India
India, New Zealand seal free trade deal
Amit Shah hails India-NZ FTA, calls it diplomacy’s milestone
India-New Zealand Free Trade Pact Concluded In Record 9 Months: Piyush Goyal
New Zealand commits USD 20 billion dollar investment in India under free trade pact
"Bad Deal": New Zealand Foreign Minister Slams India Trade Agreement
India-New Zealand Conclude FTA: Duty-Free Access To 54.11% Kiwi Exports From Day One
How India-New Zealand free trade pact is a win-win prospect
New Zealand Foreign Minister Winston Peters opposes FTA with India: What he said on the ‘low-quality deal’
India-New Zealand FTA To Boost Opportunities For Indian Professionals In IT, Design, & Engineering
India-New Zealand FTA set to facilitate banks’, insurers’ institutional presence
India's Strong Growth Cushions Impact Of US Tariffs, FTAs Driving Market Diversification: IIFT VC
New Zealand foreign minister slams 'bad deal' with India
PM Modi highlights Piyush Goyal’s vision on India-New Zealand Free Trade Agreement
India grants quota-based duty concessions to New Zealand for apples, kiwifruit and Manuka honey under FTA
New Zealand To Amend Laws To Grant GI Tags To Indian Goods Under New FTA
Why is the New Zealand foreign minister opposing the free trade deal with India?
New Zealand removes caps on post-study work visas for Indian students under India FTA
India and New Zealand finalise FTA: Read how it will benefit Indian farmers and professionals
Why New Zealand Foreign Minister slammed trade agreement with India: ‘Bad deal’
UPSC Key: India-New Zealand FTA, Sahyog portal, and Higher education bill
India, New Zealand to deepen ties in financial services
India–New Zealand trade deal on apples raises fears among growers in Kashmir, Himachal
Financial services pact to boost India-New Zealand banking, insurance ties
FTA Win-Win for India, New Zealand
NZ to amend laws for GI registration of Indian goods
Duty-Free Access, $20-Billion Investment: Inside India-New Zealand Trade Deal
DC Edit | FTA Win-Win for India, NZ
Trade deal with New Zealand is much needed
