What Happened
- New Zealand Minister for Science and Technology Shane Reti described the India-New Zealand FTA as a significant milestone that will elevate bilateral collaboration and deepen ties.
- The FTA was concluded in December 2025, making it one of India's fastest-concluded trade agreements.
- India has offered New Zealand market access in about 70% of tariff lines while keeping nearly 30% in exclusion, including dairy products (milk, cream, whey, yoghurt, cheese), animal products (other than sheep meat), and vegetable products.
- The agreement delivers unprecedented duty-free access for Indian exports to New Zealand while safeguarding India's sensitive sectors.
- The final round of negotiations was held on 10 December 2025, with the announcement on 22 December 2025.
Static Topic Bridges
India's Free Trade Agreement Strategy and Architecture
India has pursued bilateral and regional trade agreements as part of its trade liberalisation strategy since the early 2000s. India currently has FTAs/CEPAs with ASEAN, South Korea, Japan, Singapore, Sri Lanka, and several other partners. India walked out of the Regional Comprehensive Economic Partnership (RCEP) in November 2019 due to concerns over trade imbalances, particularly with China, and inadequate safeguards for domestic industries.
- India-EFTA Trade and Economic Partnership Agreement (TEPA) signed 10 March 2024 — EFTA committed $100 billion investment over 15 years
- India-Oman CEPA signed 18 December 2025
- India-EU FTA negotiations concluded 27 January 2026 after nearly two decades of negotiations (started 2007, suspended 2013, relaunched 2022)
- India-New Zealand FTA concluded December 2025
- India-UK FTA negotiations ongoing
- ASEAN-India Trade in Goods Agreement (AITIGA) review underway since 2025
- India-US Interim Trade Agreement framework announced 6 February 2026
Connection to this news: The India-New Zealand FTA is part of India's accelerated FTA strategy in 2024-2026, concluding multiple agreements simultaneously with EFTA, Oman, the EU, and now New Zealand — a marked shift from India's earlier cautious approach to trade agreements.
Trade in Dairy and Agricultural Products — India's Defensive Interests
India consistently excludes or limits dairy products in its trade agreements due to the livelihood concerns of millions of small dairy farmers. India is the world's largest milk producer (approximately 230 million tonnes in 2023-24), and the dairy sector supports over 80 million rural households. New Zealand is one of the world's largest dairy exporters, led by Fonterra Cooperative.
- India's dairy exclusion list in the NZ FTA covers: milk, cream, whey, yoghurt, and cheese
- India also excluded dairy from its FTA with ASEAN and its ongoing negotiations with the EU and UK
- Operation Flood (1970-1996), led by Verghese Kurien through NDDB, transformed India from a milk-deficit to milk-surplus nation
- National Dairy Development Board (NDDB) was established in 1965
- White Revolution made India the top milk producer globally, surpassing the USA in 1998
- Cooperative model (Amul/GCMMF) involves over 36 lakh milk producers
Connection to this news: India's insistence on keeping dairy in the exclusion list (30% of tariff lines) in the NZ FTA demonstrates the continued priority of protecting smallholder dairy farmers, even as India opens up other product lines for market access.
India-New Zealand Bilateral Relations
India and New Zealand established diplomatic relations in 1947. Bilateral trade was valued at approximately $2 billion in 2024-25. The relationship has deepened across education (over 30,000 Indian students study in NZ), defence, and people-to-people ties. New Zealand is part of the Five Eyes intelligence alliance and has been engaging more actively with the Indo-Pacific region.
- Key Indian exports to NZ: pharmaceuticals, gems and jewellery, textiles, IT services
- Key NZ exports to India: wood products, wool, kiwifruit, sheep meat
- Indian diaspora in New Zealand: approximately 250,000 (one of the largest ethnic communities)
- Both countries are members of the Commonwealth, UN, and multilateral groupings
- NZ supported India's bid for a permanent UNSC seat
Connection to this news: The FTA transforms the relationship from primarily people-to-people and diplomatic engagement into a comprehensive economic partnership, with duty-free market access providing new export opportunities for Indian goods and services.
Key Facts & Data
- India-NZ FTA concluded: December 2025 (final round: 10 December 2025)
- Tariff lines offered by India to NZ: ~70% with market access
- Exclusion list: ~30% of tariff lines (dairy, animal products, vegetable products)
- India-NZ bilateral trade: ~$2 billion (2024-25)
- Indian students in NZ: over 30,000
- Indian diaspora in NZ: ~250,000
- India is the world's largest milk producer: ~230 million tonnes (2023-24)
- India-EU FTA concluded: 27 January 2026
- India-EFTA TEPA signed: 10 March 2024