India-New Zealand FTA Boosts Pharma & Healthcare Exports with Zero-Duty Access

For India’s pharmaceutical industry, one of the country’s strongest export sectors, the agreement offers duty-free access across 90 tariff lines.

India has completed negotiations for a Free Trade Agreement with New Zealand that is poised to reshape trade flows across pharma, healthcare, and allied services, with the agreement expected to be signed within the next three months and operational from next year.

Under the deal, New Zealand has committed to providing zero-duty market access across 100 per cent of its tariff lines, covering all Indian exports, including pharma and healthcare technology.

Negotiations for the FTA were initiated earlier this year during Prime Minister Luxon’s visit to India and concluded in a record nine months following five formal negotiation rounds. Commerce and Industry Minister Piyush Goyal described the agreement as being about “building trade around people and launching opportunities- for our entrepreneurs and innovators.”

Merchandise trade between India and New Zealand stood at USD 1.3 billion in 2024-25, reflecting a 49 per cent year-on-year growth, while total trade in goods and services reached approximately USD 2.4 billion.

For India’s pharmaceutical industry, one of the country’s strongest export sectors, the agreement offers duty-free access across 90 tariff lines.

This comes at a time when New Zealand’s pharmaceutical imports average around USD 1.4 billion annually, creating a sizeable opportunity for Indian drug manufacturers and healthcare suppliers to expand their footprint in the Oceania market.

The FTA also introduces expedited regulatory pathways, including acceptance of inspections by comparable global regulators such as the US FDA, EMA, and the UK MHRA, which is expected to reduce compliance costs and shorten approval timelines.

Beyond goods, the agreement has extended New Zealand’s most comprehensive services offer to date, covering 118 service sectors.

Healthcare, IT, and professional services are among the key beneficiaries, with India securing most-favoured-nation treatment across 139 sub-sectors.

With full tariff elimination and regulatory facilitation, both sides have expressed confidence in doubling bilateral trade over the next five years.

Moreover, New Zealand has committed to investments worth USD 20 billion in India over the next 15 years.

The deal also introduces a new Temporary Employment Entry Visa pathway, allowing up to 5,000 Indian professionals at any given time to work in New Zealand for up to three years. This includes professionals from healthcare and allied sectors, such as AYUSH practitioners, alongside high-demand areas like IT.

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