India and New Zealand have concluded negotiations on the FTA, which is expected to be signed within the next three months.  The agreement will come into force after it receives approval from New Zealand’s domestic processes

New Zealand has committed to facilitate investments worth USD 20 billion in India over the next 15 years as part of the proposed free trade agreement (FTA between the two countries, an official statement said on Monday. The commitment mirrors the investment-linked trade model adopted by India in its recent pact with the European Free Trade Association (EFTA), under which the four-nation bloc pledged USD 100 billion over a similar period.

India and New Zealand have concluded negotiations on the FTA, which is expected to be signed within the next three months. The agreement will come into force after it receives approval from New Zealand’s domestic processes.

According to the commerce ministry, the USD 20 billion investment commitment is aimed at supporting key sectors such as manufacturing, infrastructure, services, innovation and job creation, in line with India’s Make in India initiative. Commerce and Industry Minister Piyush Goyal said the investment pledge is supported by a rebalancing mechanism that allows India to suspend trade benefits if the commitment is not met.

He clarified that the investment commitment covers only foreign direct investment (FDI) and excludes foreign portfolio investments (FPI) and institutional investments (FIIs). “This will ensure long-term, stable and sustainable capital inflows into the country,” Goyal said while addressing reporters.

India’s chief negotiator for the agreement, Petal Dhillon, said investments from New Zealand are expected in areas such as manufacturing and infrastructure. Goyal noted that New Zealand has so far invested relatively modest amounts in India, making the fresh commitment—equivalent to about Rs 1.80 lakh crore—a significant gain for the Indian economy.

India has received cumulative FDI inflows of USD 88.24 billion between April 2000 and September 2025, highlighting the scale of the proposed commitment under the FTA.