India and New Zealand will sign the Free Trade Agreement (FTA) on Monday that will entail a $20 billion investment commitment by the island country in India over the next 15 years along with zero-duty access for New Delhi in all key export sectors.
“We will sign our FTA with India on Monday,” Prime Minister of New Zealand Christopher Luxon posted on ‘X’ while pointing to the opportunities the agreement will open up for New Zealand businesses.
The agreement was finalised on December 22 last year and is among the fastest negotiated by India. Negotiations for the agreement launched in March 2025. Commerce and Industry Minister Piyush Goyal and Trade and Investment Minister of New Zealand Todd McClay will sign the agreement.
It is the second attempt by both countries to strike a trade deal. The first FTA attempt lasted from 2010 to 2015. During that period 10 rounds of negotiations were held before the . One of the key sticking point in the FTA is New Zealand’s demand for access to Indian dairy markets.
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Navigating the Dairy Deadlock
In the current agreement India managed to secure exclusions for dairy products like milk, cream, yogurt, and cheese. Animal products other than sheep meat, vegetable products, sugar, artificial honey, vegetable or animal fats and oils, gems and jewellery, copper articles and aluminium articles are also excluded.
Because the dairy sector—the backbone of New Zealand’s economy, accounting for 34% of its total exports—is excluded, the deal has been opposed by Prime Minister Luxon’s coalition partner. New Zealand First leader Winston Peters described it as a “low-quality deal,” specifically citing concerns over immigration provisions and the lack of traditional market access for New Zealand’s biggest export, dairy.
Market Access Wins
The Prime Minister has, however, secured backing of the main opposition Labour Party for the agreement.
The FTA eliminated duties on all Indian exports to New Zealand. India offered market access in a little over 70% of its tariff lines while excluding nearly 30%. India will immediately remove tariffs on wood, wool, sheep meat, leather and raw hides. On petroleum, machinery and some milk derivatives like peptones the tariff elimination will be in phases. In wines, pharma, iron and steel, polymers and aluminium the duties will be reduced but not eliminated.
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Duties on honey, apples, kiwi fruit and albumin including milk albumin the duties will be reduced and a quota on imports will be placed. The FTA also offers a quota of 5,000 visas for skilled Indians for stay up to 3 years. The sectors covered include AYUSH practitioners, yoga instructors, chefs, music teachers, IT, engineering, healthcare, education, and construction.
TOPICSFree Trade AgreementThis article was first uploaded on April twenty-four, twenty twenty-six, at forty-seven minutes past six in the evening.