Evaluate the India–New Zealand FTA in light of India's approach to protecting sensitive agricultural sectors while expanding market access.

The India–New Zealand FTA was signed at Bharat Mandapam in April 2026 [1]. It tests the trade approach India has followed since leaving RCEP: open markets on unequal terms while protecting farm livelihoods. On balance, the FTA largely achieves this. How much it delivers will depend on how far firms use it and how well origin rules are enforced.

Market access gained

• Full duty-free access: New Zealand removes duties on 100% of its tariff lines from entry into force. This is India's first FTA with such access, and it helps labour-intensive sectors such as textiles, leather and gems & jewellery [1][3].
• Beyond tariffs: New Zealand has committed to facilitate USD 20 billion of investment over 15 years. A Temporary Employment Entry pathway offers 5,000 visas for skilled Indians [1].

Safeguards for sensitive agriculture

• Calibrated offer: India liberalises 70.03% of tariff lines, covering about 95% of bilateral trade. The other 29.97% are excluded [2].
• Exclusion list: It covers dairy (milk, cream, whey, yoghurt, cheese), sugar, onions, spices and edible oils. This protects smallholder dairy and cooperative farmers from New Zealand's large export sector [1][3].
• Gradualism: 35.60% of lines are phased out over 3, 5, 7 and 10 years. A small tariff-rate quota window covers items such as wool and sheep meat [1][3].
• Origin guardrails: Product-specific rules and a verification mechanism, together with CAROTAR 2020 due diligence by importers, guard against trade deflection, i.e. third-country goods routed through New Zealand to get the lower duty [1][4].

Limitations

• Asymmetry: New Zealand's main export interest, dairy, is excluded. This limits how deep the deal goes and may bring pressure at future reviews.
• Utilisation gap: Small firms find the cost of proving origin hard to bear, so preferences may go unclaimed. India also publishes no regular figures on how much each FTA is used.
• Modest base: Bilateral trade is still small, so the immediate gains will be limited.

Overall, the FTA is a favourable bargain on unequal terms: India gets full market access and investment, while its sensitive farm sectors stay protected. To turn this into real gains, India should train MSMEs on origin rules, publish utilisation data and build agri-technology cooperation with New Zealand. A trade policy that protects farmers while opening markets also serves SDG 2 (zero hunger) and SDG 8 (decent work and economic growth). This makes the agreement a workable template for India's newer FTAs.