Cricket, Curries, and Kiwifruit: How Culture Shaped the Flagship FTA Between India and New Zealand

Across oceans and time zones, India and New Zealand have stitched together a new economic bridge carrying goods, ideas, talent and opportunity between two distant yet like-minded nations. The conclusion of a landmark Free Trade Agreement (FTA) signals not just an economic pact, but a recalibration of how two democracies in the Indo-Pacific see each other’s future.

More than a routine trade announcement destined for fine print, it is a strategic statement delivered with speed, confidence and ambition. In a world wary of fractured supply chains and economic uncertainty, India and New Zealand have chosen openness and momentum.

A Deal Forged Fast, With Strategic Intent

Negotiations began on 21 March and wrapped up in just nine months, making this one of the fastest-concluded FTAs for both countries. The urgency was deliberate. India is accelerating toward its Viksit Bharat 2047 vision, while New Zealand is pursuing export diversification and long-term economic resilience.

New Zealand’s Minister for Trade and Investment, Todd McClay, described the pact as a “once-in-a-generation agreement.” For exporters eyeing one of the world’s fastest-growing consumer markets, the phrase feels more factual than rhetorical.

Under the agreement, tariffs will be eliminated or reduced on 95 per cent of New Zealand’s exports, which is among the highest coverage India has offered in any FTA. Nearly 57 per cent become duty-free from day one, rising to 82 per cent once fully implemented.

From Policy to Produce: How Markets Really Open

The figures are impressive, but the human impact is where the agreement truly comes alive.

A kiwifruit grower in New Zealand’s Bay of Plenty often plans harvests years in advance, knowing that access to markets can be as fragile as the crop itself. With duty-free quotas expanding under the FTA, those calculations now stretch confidently toward India’s fast-growing urban markets.

India’s consumer base is projected to push the economy toward a NZ$12 trillion valuation by 2030! This is no longer a distant abstraction. It is a reachable destination for exporters of fruit, wine, seafood and forestry products who once struggled with high tariffs and regulatory friction.

Agriculture: Where the Agreement Puts Down Roots

Agriculture sits at the heart of this FTA, both economically and symbolically. Apples receive a 50 per cent tariff cut under an expanded quota. Kiwifruit enjoys world-first preferential access, with duty-free quotas nearly four times current export volumes and halved tariffs outside those limits.

In the hill orchards of Himachal Pradesh, Indian apple growers are already watching New Zealand’s expertise in pruning, storage and post-harvest handling. The cooperation has now been formalised through agri-technology action plans embedded in the agreement.

Cherries, avocados, persimmons and blueberries gain phased duty-free access, while mānuka honey tariffs fall from a steep 66 per cent to just 16.5 per cent over five years.

From Niche Export to Household Staple

For beekeepers, mānuka honey has always been more than a commodity. Reduced tariffs transform it from a niche export into a household product for millions of Indian consumers discovering its medicinal value for the first time.

Wine producers also gain ground. Tariffs once as high as 150 per cent will fall dramatically to 25 or 50 per cent over a decade, allowing New Zealand labels to compete in India’s expanding premium beverage market.

The agreement also future-proofs New Zealand’s dairy sector, granting duty-free access for ingredients used in re-export, bulk infant formula and high-value dairy preparations over phased timelines.

India’s Gains: Jobs, MSMEs and Global Integration

For India, the FTA is carefully calibrated to support domestic priorities. Duty-free access across 100 per cent of tariff lines enhances competitiveness in labour-intensive sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, engineering goods and automobiles.

These sectors directly employ millions, including women, artisans, youth and MSMEs. Deeper integration into global value chains is not just an economic objective, but a social one.

Commerce and Industry Minister Piyush Goyal framed the agreement as “about building trade around people,” highlighting opportunities for farmers, entrepreneurs, students and innovators alike.

Services: The Quiet Powerhouse of the Agreement

Trade is not only about what crosses borders, but who does. Indian students, professionals, and skilled workers now find new pathways opening. If goods give the agreement its weight, services give it wings.

India secured New Zealand’s most ambitious services offer to date. IT and IT-enabled services, professional services, education, finance, tourism, construction and business services now have clearer and more predictable access.

A young software engineer in Bengaluru no longer sees New Zealand as just a study destination. With expanded services access, and mobility pathways, it is now a place to build a career and bring global experience home.

Mobility Designed for Modern Economies

Mobility provisions mark a defining shift in how both countries view talent. New Zealand will introduce a framework averaging 1,667 skilled three-year work visas annually, aligned with shortages in healthcare, education, ICT and engineering.

India gains a Temporary Employment Entry Visa pathway allowing up to 5,000 professionals at any given time to work in New Zealand for up to three years. The list spans high-demand sectors and culturally rooted professions.

AYUSH practitioners, yoga instructors, Indian chefs and music teachers now receive formal recognition where informal demand already existed.

Short Stays That Shape Long Futures

For young Indians and New Zealanders, a working holiday is often a first taste of another country. The aligned visa framework ensures those short stays can plant long-term professional and personal connections.

Up to 1,000 working holiday places annually will support tourism, agriculture and rural labour needs in New Zealand, while strengthening people-to-people ties that often mature into entrepreneurship, collaboration and diplomacy.

Education, which has for ages been a pillar of bilateral ties, gained further depth through enhanced post-study work opportunities and student-friendly provisions.

Investment With Long-Term Vision

Beyond trade and talent, the agreement significantly strengthens investment ties. New Zealand has committed to facilitating USD 20 billion in investment into India over the next fifteen years, aligned with Make in India priorities across manufacturing, infrastructure, services and innovation.

Indian companies are expected to expand their footprint in New Zealand, gaining access to Pacific markets and advanced regulatory ecosystems. This two-way investment reflects confidence, not convenience.

Regulatory cooperation in pharmaceuticals and medical devices, including acceptance of global Good Manufacturing Practice inspections, further accelerates innovation-led growth.

A Strategic Signal in the Indo-Pacific

Strategically, the FTA lands at a telling moment. India and New Zealand share democratic values, a commitment to a rules-based order, and growing interest in economic resilience across the Indo-Pacific.

High Commissioner Neeta Bhushan noted that current bilateral trade of NZD 3.14 billion is far below potential. Agriculture, manufacturing and services stand poised for rapid expansion.

Ms. Bhushan said, "It is a very positive and welcome development.  Our two countries have been engaging at the highest levels, and our teams were also working extremely hard since the negotiations started in March this year. In my last 3 years in New Zealand, I have seen tremendous interest in enhancing ties, especially business ties between our two like-minded countries. We already have strong cultural and people-to-people ties. Our trade figures at NZD 3.14 billion are far below the potential. FTA has clearly been on everybody’s mind as an agreement that would unlock the untapped potential in trade and services. It will open new opportunities across key sectors such as agriculture, manufacturing and services, which will benefit the business in both our countries. I am confident that the FTA will not only further deepen our partnership across sectors but will be the inflection point for enormous growth in our mutually beneficial commercial ties."

Cricket and classrooms built early bridges. Defence cooperation, climate action and innovation are strengthening newer ones. This agreement connects them all.

A Partnership Built for the Long Arc

This is India’s third FTA this year, yet it stands out for its balance and breadth. It blends tariffs with technology, mobility with markets, and investment with innovation. It is less about transactional wins and more about structural alignment.

As formal signing approaches, businesses on both sides are already recalibrating strategies and supply chains. Farmers, students, engineers and entrepreneurs feel the shift before the ink has even dried.

What once flowed as goodwill now flows as trade, talent and trust! This flagship FTA is surely going to carry the India–New Zealand partnership into its next horizon.