India New Zealand FTA: Agra meet ahead of signing highlights $50 bn leather export ambition 

India-New Zealand FTA updates: Ahead of the formal signing of the India-New Zealand Free Trade Agreement (FTA), Union Commerce and Industry Minister Piyush Goyal and New Zealand’s Trade and Investment Minister Todd McClay led an industry outreach in Agra, positioning the pact as a broad-based economic partnership spanning trade, investment, mobility and people-to-people ties. 

The engagement brought together stakeholders from leather and footwear, pharmaceuticals, AYUSH, medical devices, light engineering and sports goods sectors, highlighting the wide industrial base expected to benefit. 

Officials emphasised that the FTA extends beyond tariff reductions to include market access, agricultural productivity, talent mobility, tourism and cross-sector collaboration, aimed at supporting MSMEs, farmers, women entrepreneurs and skilled professionals. 

India and New Zealand are set to sign a comprehensive Free Trade Agreement (FTA) on April 27, 2026, in New Delhi. The deal provides 100% duty-free access for Indian exports to New Zealand and covers 95% of imports from New Zealand, aiming to double bilateral trade to $5 billion in five years.

Leather sector eyes $50 billion opportunity 

Agra, which accounts for nearly 75% of India’s leather footwear production, emerged as a key focus. With duties on 100% of Indian exports set to be eliminated and tariffs on leather and footwear reduced from 5% to zero, exporters expect a significant competitive edge. 

Industry sees the sector growing to $50 billion by 2030, driven by a shift towards high-value manufacturing and global sourcing. The synergy between New Zealand’s raw material base and India’s manufacturing strength was also highlighted. 

Pharma, AYUSH get regulatory boost 

The agreement’s provisions for faster regulatory approvals in pharmaceuticals and medical devices — through acceptance of GMP and GCP inspection reports — are expected to ease compliance and speed up product access. 

Stakeholders also welcomed a dedicated Health and Traditional Medicine chapter recognising AYUSH systems, marking a first for both countries. 

Focus on mobility, education and MSMEs 

Goyal highlighted opportunities in education and talent mobility, urging industry to leverage new pathways for students and professionals. He also called for ensuring that benefits of the agreement reach MSMEs and smaller enterprises across sectors. 

New Zealand flags India as strategic priority 

McClay described India as a strategic priority and termed the pact among the highest quality FTAs concluded by New Zealand. He encouraged businesses to explore joint ventures and investment opportunities in India’s growing economy. 

The Agra engagement is part of a series of interactions ahead of the FTA signing in New Delhi. Concluded in just nine months since its launch on March 16, 2025, the agreement marks a significant step forward in bilateral economic relations.

Addressing the gathering, Shri Goyal described the FTA as an opening of both doors and minds, and urged industry to think beyond the ordinary and leverage the full breadth of the agreement across sectors including pharma, AYUSH, education, sports, tourism and investment. He called upon industry bodies to ensure that its benefits reach every MSME and small enterprise.

Todd McClay reaffirmed that India is a strategic priority for New Zealand and described this as the highest quality FTA New Zealand has concluded. He encouraged businesses on both sides to actively pursue joint ventures, and highlighted significant investment opportunities that New Zealand businesses see in India’s growing economy.