India-New Zealand FTA Updates: Ahead of the formal signing of the India-New Zealand Free Trade Agreement (FTA), Union Minister of Commerce and Industry Piyush Goyal and New Zealand Minister of Trade and Investment Todd Maclay led an industry outreach campaign in Agra, positioning the agreement as a broad economic partnership encompassing trade, investment, mobility and people-to-people relations.
The engagement brought together stakeholders from the leather, footwear, pharma, Ayush, medical devices, light engineering and sporting goods sectors, highlighting the broad industrial base it is expected to benefit from.
Officials stressed that the FTA extends beyond tariff reductions to include market access, agricultural productivity, talent mobility, tourism, and cross-sector cooperation, with the aim of supporting micro, small and medium enterprises, farmers, women entrepreneurs, and skilled professionals.
India and New Zealand are scheduled to sign a comprehensive Free Trade Agreement (FTA) on April 27, 2026 in New Delhi. The agreement provides 100% duty-free access for Indian exports to New Zealand, covering 95% of imports from New Zealand, with the aim of doubling bilateral trade to $5 billion in five years.
The leather sector is eyeing a $50 billion opportunity
Agra, which accounts for nearly 75% of India’s leather footwear production, has emerged as a major hub. With the elimination of customs duties on 100% of Indian exports and the reduction of customs duties on leather and footwear from 5% to zero, exporters expect a significant competitive advantage.
The industry expects the sector to grow to $50 billion by 2030, driven by a shift toward high-value manufacturing and global sourcing. The synergies between New Zealand’s raw material base and India’s manufacturing strength were also highlighted.
Pharma and Ayush get regulatory support
The Agreement’s provisions for faster regulatory approvals in the field of medicines and medical devices – through the acceptance of GMP and GCP inspection reports – are expected to facilitate compliance and accelerate product access.
Stakeholders also welcomed a dedicated chapter on health and traditional medicine recognizing AYUSH systems, marking a first of its kind in both countries.
Focus on mobility, education and micro, small and medium enterprises
Highlighting opportunities in education and talent mobility, Goyal urged the industry to tap into new pathways for students and professionals. He also called for ensuring that the benefits of the agreement reach MSMEs and small businesses across sectors.
New Zealand considers India a strategic priority
Maclay described India as a strategic priority and described the agreement as among the highest quality free trade agreements concluded by New Zealand. He encouraged companies to explore joint ventures and investment opportunities in the growing Indian economy.
Agra’s participation is part of a series of interactions ahead of the signing of the FTA in New Delhi. Concluded in just nine months since its launch on March 16, 2025, the agreement represents an important step forward in bilateral economic relations.
Addressing the gathering, Shri Goyal described the FTA as opening doors and minds and urged the industry to think outside the box and leverage the full scope of the agreement across sectors including pharma, AYUSH, education, sports, tourism and investment. He called on industry bodies to ensure that its benefits reach all micro, small and medium-sized enterprises.
Todd McLay reiterated that India is a strategic priority for New Zealand and described it as the highest quality New Zealand FTA. He encouraged companies from both sides to actively pursue joint projects, and highlighted the important investment opportunities that New Zealand companies see in India’s growing economy.
