The India-New Zealand Free Trade Agreement (FTA) has sent a clear message that pragmatism has prevailed and that both sides have agreed on a framework for a bilateral economic partnership for the mid-21st century, according to a new report.

The deal represents a pivot for New Zealand toward deeper engagement with the world's most populous nation and fastest-growing economy in the world. For India, the trade pact builds on its "Act East" and "Indo-Pacific" pillars of its foreign trade policy, "aiming to secure a trusted, long term, comprehensive economic partnership in a region increasingly shaped by competing spheres of influence", says the report. The deal is also a vital component of the broader Indo-Pacific maritime security architecture, complementing India's existing pacts with Australia and the UAE to form a "Southern Anchor" of democratic trade, it adds.

India and New Zealand concluded a comprehensive and long-awaited FTA last month, marking a major economic and strategic milestone. The negotiations were formally launched on March 16, 2025.

This will involve the NZ private equity and businesses tapping into India's large consumer base, infrastructure, green energy, and digital ambitions as part of its Vision 2047".

The FTA also allows mobility in the special skills category and can be seen as a "talent security" move for New Zealand.

As the FTA is signed and implemented in late 2026, New Zealand businesses need to recognize that it allows for future consultations to add more value for both countries", the report noted, adding that in a world of geopolitical uncertainty, India has secured a "Southern Anchor" through this FTA, but an anchor only provides stability if the ship is ready to sail.