India

India, New Zealand Reach Free Trade Deal After 9 Months

Is the India-New Zealand trade deal a strategic win for both nations, or does New Zealand give away too much for too little?

Published DEC 22 2025

India, New Zealand Reach Free Trade Deal After 9 Months

Story

Above: Prime Minister Narendra Modi with New Zealand Prime Minister Christopher Luxon in New Delhi, India on March 17, 2025. Image credit: Sondeep Shankar/Getty Images

The Facts

India and New Zealand announced on Monday they have reached a free trade agreement after nine months of negotiations, with formal signing expected in the first quarter of next year following legal review of the negotiated text.
The Associated Press
ABC News
Newsday
Under the agreement, India will receive zero-duty export access for all its goods to New Zealand, while New Zealand will get duty concessions and market access for about 70% of India's tariff lines, covering 95% of its exports in a phased manner.
The Economic Times
TRT World
New Zealand has committed investments worth $20 billion in India over a period of 15 years as part of the agreement, according to India's Trade Ministry, while bilateral trade stood at $2.4 billion in 2024.
MINT
TRT World
New Zealand First party leader Winston Peters said his party would vote against the deal, calling it "a bad deal" that "gives too much away, especially on immigration" and does not secure sufficient benefits for New Zealanders, particularly in dairy.
Modern Diplomacy
RNZ
Times
The agreement includes a new temporary employment visa pathway for up to 5,000 Indian professionals at any given time with stays of up to three years, along with 1,000 working holiday visas annually and post-study work visas for graduates.
MINT
The Times of India
India excluded dairy imports such as milk, cream, cheese and yogurt from the deal, citing domestic sensitivities, while New Zealand secured first-time access for apples and honey, and the best access for kiwifruit into India of any country.
Shai Akabas
Al Jazeera
RNZ

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

The India-New Zealand free trade deal represents a strategic win for both nations, slashing tariffs on 95 percent of exports while securing $20 billion in New Zealand investment for India over 15 years. Concluded in a record nine months, this agreement opens massive opportunities across textiles, engineering, services and mobility, positioning both countries to double bilateral trade by 2030. With India gaining zero-duty access to New Zealand's market and securing commitments across 118 service sectors, this pact delivers tangible benefits for farmers, professionals and businesses while diversifying trade away from volatile markets.

The Times of India

Narendra Modi on X

Christopher Luxon on X

Narrative B

This rushed deal with India fails New Zealand by giving away far too much on immigration while securing almost nothing for the dairy sector, the country's largest export industry. Core dairy products like butter and cheese remain locked out behind India's protectionist walls, leaving New Zealand at a massive disadvantage. The agreement creates new visa pathways that will flood the labor market during tight economic times, while India refuses to meaningfully open its massive consumer market to Kiwi farmers and producers.

RNZ

National Herald