A New Market Opens: India–New Zealand FTA to Boost Trade, Jobs, and Mobility

India and New Zealand have officially concluded negotiations on a Free Trade Agreement (FTA), marking a major milestone in their bilateral relationship. Announced jointly by Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon, the agreement is being described as historic, ambitious, and mutually beneficial. Finalized in just nine months after talks resumed in March 2025, the pact reflects strong political will on both sides to deepen economic engagement and unlock new opportunities for businesses and people. The FTA is expected to be formally signed in the first half of 2026 and is projected to double bilateral trade to USD 5 billion within the next five years, while attracting investments worth nearly USD 20 billion over a 15-year period.What Is a Free Trade Agreement (FTA)?A Free Trade Agreement, or FTA, is a deal between two or more countries to make trade easiA New Market Opens: India–New Zealand FTA to Boost Trade, Jobs, and Mobilityer and cheaper. Under an FTA, countries agree to reduce or remove taxes called tariffs on goods and services they buy from each other. This helps businesses sell products at lower prices and reach new markets. FTAs also support smoother movement of services, investments, and sometimes workers between countries. In simple words, an FTA helps countries do business with each other more easily, boosts trade, creates jobs, and strengthens economic ties while still protecting important domestic sectors.Faster Talks, Bigger AmbitionsTrade negotiations between India and New Zealand had remained stalled for nearly a decade before being revived earlier this year. Momentum picked up following Prime Minister Luxon’s visit to India in March 2025, after which both governments committed to an accelerated timeline. The agreement’s conclusion within nine months is being seen as rare in global trade diplomacy, especially at a time when protectionism is rising across many economies. Prime Minister Modi, speaking after the announcement, said the swift conclusion of the FTA reflected a shared ambition to strengthen economic ties and deliver tangible benefits to citizens of both countries. The External Affairs Ministry echoed this sentiment, calling the agreement a platform for deeper strategic cooperation beyond trade.What the Agreement CoversThe India–New Zealand FTA focuses on goods, services, investment, and labor mobility. Under the deal, India will gain tariff-free access to New Zealand’s market, while New Zealand will eliminate or reduce tariffs on 95 percent of its exports to India. These include products such as timber, fruits, wool, wine, and industrial raw materials. At the same time, India has carefully safeguarded sensitive domestic sectors. No concessions have been made on imports of dairy products, onions, sugar, spices, edible oils, rubber, and other farm commodities. This was a key political and economic priority, given the importance of agriculture and dairy livelihoods in India.A Lifeline for Indian ExportersThe agreement comes at a crucial moment for Indian exporters, many of whom are facing pressure due to high tariffs imposed by the United States on Indian goods. By opening up tariff-free access to New Zealand and strengthening India’s footprint in the Oceania region, the FTA offers an important avenue for diversification. Labor-intensive sectors such as apparel, leather, textiles, footwear, rubber products, and home décor are expected to benefit significantly. In addition, the agreement is likely to boost exports of automobiles, auto components, machinery, electronic goods, electrical equipment, and pharmaceuticals. For India’s MSMEs, the FTA offers a chance to integrate into new supply chains and access a stable, high-income market.Services and Mobility at the CoreOne of the standout features of the India–New Zealand FTA is its strong emphasis on services and workforce mobility. New Zealand has offered its most ambitious services package to date, covering 118 services sectors and granting Most Favored Nation treatment in 139 sub-sectors. These include information technology, professional services, education, telecommunications, tourism, and construction. India, in turn, has offered market access in more than 100 service sectors. This mutual openness is expected to significantly expand trade in services, which already forms a strong pillar of India’s global economic engagement.New Doors for Indian Professionals and StudentsThe human dimension of the agreement is particularly evident in its mobility provisions. New Zealand has committed to issuing up to 5,000 temporary employment visas annually for Indian professionals, with stays of up to three years. These visas will cover skilled occupations such as IT, engineering, healthcare, education, and construction, as well as AYUSH practitioners, yoga instructors, Indian chefs, and music teachers. In addition, the FTA includes generous provisions for Indian students. Post-study work visas of up to three years will be available for STEM graduates, while doctoral scholars can stay for up to four years, with no numerical caps. A further 1,000 working holiday visas per year will also be granted, encouraging youth mobility and cultural exchange.What New Zealand GainsFor New Zealand, the agreement opens doors to one of the world’s largest and fastest-growing consumer markets. With India’s economy projected to reach USD 7 trillion by 2030, the FTA offers New Zealand exporters long-term growth opportunities. Wellington is keen to expand exports of fresh fruit, wool, wine, and value-added products, while also securing clearer regulatory pathways and market access in India. The deal also positions New Zealand firms to tap into India’s expanding infrastructure, services, and technology sectors, supported by stronger investment protections under the agreement.A Forward-Looking PartnershipThe India–New Zealand Free Trade Agreement represents more than a commercial pact. It signals trust, shared values, and a long-term partnership between two democratic nations. By balancing market access with domestic safeguards and placing people at the heart of economic cooperation, the agreement sets a strong foundation for a future-ready relationship that benefits businesses and citizens on both sides.

India and Oman Sign Landmark Trade Pact, Unlocking New Export Opportunities

India and Oman have taken a decisive step towards deepening their economic partnership with the signing of a Comprehensive Economic Partnership Agreement (CEPA) on December 18, 2025. The agreement, signed in Muscat by Union Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al Yousef, was witnessed by Prime Minister Narendra Modi and Sultan Haitham bin Tarik. More than just a trade pact, the CEPA reflects growing trust, strategic alignment, and people-to-people ties between the two nations. At its core, the agreement aims to remove barriers to trade, boost services cooperation, and create new pathways for investment and employment. For Indian exporters, professionals, and entrepreneurs, the deal opens doors that were previously constrained by tariffs and restrictive mobility norms.Near-Total Tariff-Free Access for Indian ExportsOne of the most significant outcomes of the CEPA is Oman’s decision to provide India duty-free access to 98.08 percent of its tariff lines. This effectively covers 99.38 percent of India’s exports to Oman, offering a major competitive advantage to Indian goods in the Omani market. On the other side, India has agreed to liberalize tariffs on 77.79 percent of its tariff lines, covering 94.81 percent of imports from Oman. In 2024–25, India exported goods worth USD 4.06 billion to Oman, while imports stood at USD 6.5 billion. Although Oman accounts for less than 1 percent of India’s total trade, the strategic importance of the Gulf nation lies in its location, energy resources, and long-standing ties with India. With tariffs of around 5 percent currently applied on nearly 83.5 percent of Indian exports to Oman, the removal of these duties could significantly improve margins for Indian exporters.Relief for Key Export SectorsIndia’s exports to Oman are currently dominated by petroleum products, which already enjoy relatively low duties. However, the real gains from CEPA are expected in sectors that previously faced tariffs. Engineering goods, chemicals, textiles, and minerals such as mica and coal are among the major beneficiaries. Labor-intensive sectors like ready-made garments, which face growing tariff pressures in Western markets such as the US, are likely to find Oman a more attractive destination. In FY25 alone, India exported ready-made garments worth USH 63.8 million to Oman. For textile workers and small manufacturers in India, tariff elimination could mean more stable orders, better prices, and sustained employment. This is where the human impact of the agreement becomes visible, moving beyond macroeconomic numbers to livelihoods on the ground.A Major Boost for India’s Services SectorBeyond goods, the CEPA places strong emphasis on services, an area where India holds a natural advantage. Oman has made wide-ranging commitments across sectors such as computer-related services, professional and business services, education, healthcare, research and development, and audio-visual services. With Oman importing services worth USD12.52 billion globally, and India currently holding just over 5 percent of that share, there is ample room for expansion. The agreement also allows 100 percent foreign direct investment by Indian companies in major services sectors in Oman through commercial presence. This opens the door for Indian IT firms, healthcare providers, educational institutions, and consulting companies to establish long-term operations in the Gulf nation.Enhanced Mobility and Opportunities for ProfessionalsPerhaps the most human-centric aspect of the CEPA is the enhanced mobility framework for Indian professionals. For the first time, Oman has offered extensive commitments under Mode 4, which governs the movement of natural persons. The quota for intra-corporate transferees has been increased from 20 percent to 50 percent, while the permitted stay for contractual service suppliers has been extended from 90 days to two years, with the option of a further two-year extension. Additionally, more liberal entry and stay conditions have been offered for skilled professionals in fields such as accountancy, taxation, architecture, and medical services. For Indian professionals and their families, this means greater job security, longer-term planning, and deeper integration into the Omani economy.Part of a Larger Gulf StrategyThe India–Oman CEPA is India’s second major trade agreement with a Gulf nation, following the CEPA with the United Arab Emirates in 2022. Together, these agreements signal India’s intent to strengthen economic integration with the Gulf Cooperation Council region. Negotiations with Oman began in November 2023 and concluded in August 2025 after multiple rounds of discussions. The relatively swift conclusion reflects strong political will on both sides and a shared vision of economic partnership.More Than a Trade DealWhile the CEPA is packed with technical details on tariffs and services, its real significance lies in the opportunities it creates for people. From an Indian textile worker benefiting from new export orders to a young IT professional securing a long-term assignment in Muscat, the agreement touches lives in tangible ways. It also reinforces the centuries-old cultural and commercial ties between India and Oman, adapting them to the demands of a modern global economy. In essence, the India–Oman CEPA is not just about trade figures crossing USD 3 billion without tariffs. It is about trust, opportunity, and shared growth, laying the foundation for a stronger, more connected future between the two nations.