Lok Sabha Question No. 2837 (UNSTARRED), answered on 2026-03-10
Subject: India-New Zealand FTA
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Sagar Eshwar Khandre

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE

## LOK SABHA UNSTARRED QUESTION NO.2837 ANSWERED ON 10/03/2026

## INDIA-NEW ZEALAND FTA

## 2837. SHRI SAGAR ESHWAR KHANDRE:

Will  the  Minister  of COMMERCE AND INDUSTRY ( वाणिज्य एवं उद्योग मंत्री )  be  pleased  to state:

- (a) the key provisions and strategic objectives of the recently concluded India-New Zealand Free Trade Agreement (FTA) and the sectors expected to benefit most;
- (b) whether the FTA provides duty-free market access for Indian exports to New Zealand and the  details  of  tariff-liberalisation  commitments  made  by  both  countries,  if  so,  the  details thereof;
- (c) the expected impact of the FTA on labour-intensive sectors, MSMEs, services exports and employment generation in India;
- (d) the safeguards included to protect sensitive sectors such as agriculture and dairy, and the mechanism to address import surges or trade imbalances; and
- (e) the steps being taken to help Indian exporters, farmers and small enterprises to effectively utilize opportunities under the FTA?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री ( श्री णिणिन प्रसाद )

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a)  to  (c) The  Government  of  India  successfully  concluded  negotiations  for  the  India-New Zealand  Free  Trade  Agreement  (IN-NZ  FTA)  on  22  December  2025.  The  Agreement  covers trade  in  goods,  services  and  investment,  along  with  provisions  including  on  rules  of  origin, customs procedures, sanitary and phytosanitary measures, technical barriers to trade, intellectual property rights and economic cooperation.

Under the Agreement, New Zealand has provided zero-duty market access on 100% of India's exports upon entry into force, while India has provided tariff liberalisation on about 70% of tariff lines (entry into force and phased).  Key sectors expected to benefit include textiles and apparel, leather  and  footwear,  engineering  goods,  pharmaceuticals  and  medical  devices,  chemicals, electronics,  agricultural  and  processed  food  products,  and  other  labour-intensive  and  MSMEdriven sectors.

In  Services,  New  Zealand  has  extended  market  access  commitments  in  about  118  services sectors/sub-sectors  and  Most-Favoured  Nation  (MFN)  commitments  in  about  139  sub-sectors, covering  key  areas  of  interest  to  India  including  Computer  Related  Services,  Professional

Services, Telecommunication Services, Audio-Visual Services, Construction, Education, Tourism and  other  business  services.The  Agreement  also  provides  improved  skilled  mobility  through  a Temporary Employment Entry Visa pathway for Indian professionals, with a quota of 5,000 visas and stay of  up to  three  years,  minimum  of  20  hours  per  week  work   for  Indian  students,  post study work visa- for upto 3 years for STEM Bachelor's and Masters's graduates, and upto 4 years for  Doctoral  holders  and  1000  Working  holiday  Visas  for  young  Indians.  India  has  extended market access in 106 services sectors/sub sectors and MFN in 45 services sectors / sub sectors to New Zealand.

Further, New Zealand has committed to facilitate investments of USD 20 billion into India over a period of fifteen years, thereby supporting manufacturing, infrastructure and innovation.

The FTA is expected to significantly benefit labour intensive and MSME sectors such as textiles, leather, footwear, engineering goods, pharmaceuticals, chemicals, marine products, agricultural and food processing products, through improved market access and Zero duty for goods from India to New Zealand. The Agreement is also expected to boost exports, enhance competitiveness, and generate employment, particularly in labour-intensive sectors.

(d)  Adequate  safeguards  have  been  incorporated  in  the  India-New  Zealand  FTA  through  a calibrated and responsible market access approach to protect sensitive sectors. Products such as dairy products (milk, cream, whey, yoghurt, cheese, etc.), animal products (other than sheep meat),  selected  vegetable  products  (including  onions,  chana,  peas,  maize/corn  and  almonds), sugar, animal, vegetable or microbial fats and oils, arms and ammunition have been kept in the exclusion list.

Further,  market  access  for  selected  agricultural  products  from  New  Zealand,  including  apples, kiwifruit, Manuka honey and albumins, will be regulated through Tariff Rate Quotas (TRQs) along with  Minimum Import Price and other safeguard measures. The TRQs in apples, Kiwifruit and Manuka Honey are linked to Agriculture Productivity Action Plans and will be monitored through a Joint Agriculture Productivity Council (JAPC), to enhance farm productivity and production of agri products generating higher farmer incomes while safeguarding the interests of domestic farmers and MSMEs.

Additionally,  the  agreement  provided  for  Bilateral  Safeguard  Mechanism  (BSM)  to  protect domestic industry from any surge in import due to reduction or elimination of tariff under these FTAs which is causing injury to the domestic industry.

(e)  To  enable  effective  utilisation  of  opportunities  under  the  FTA,  the  Government  undertakes real-time  monitoring  of  trade  trends  and  holds  regular  consultations  with  Export  Promotion Councils  (EPCs),  industry  stakeholders  and  Indian  Missions  abroad  to  identify  sector-specific opportunities  and  market  access  constraints.Institutional  mechanisms  under  the  Agreement, including Joint Committees and sectoral cooperation platforms, will facilitate resolution of traderelated issues and dissemination of information. Structured cooperation in areas such as MSME linkages,  agriculture  productivity,  customs  facilitation  and  regulatory  alignment  will  support exporters, farmers and small enterprises in leveraging the benefits of the Agreement.

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