India and New Zealand have concluded negotiations on the Financial Services Annex of the proposed India–New Zealand Free Trade Agreement (FTA) on December 22, 2025, marking a key milestone in strengthening bilateral economic cooperation.

Finalised during the last round of talks held on December 10, 2025, the annex goes beyond standard WTO-GATS commitments and includes 18 articles aimed at improving market access, regulatory cooperation, and financial integration between the two countries.

Key provisions include cooperation on real-time digital payments and cross-border remittances, fintech collaboration through regulatory sandboxes, safeguards for data protection and financial information transfer, non-discriminatory credit rating practices, and support for back-office and financial services outsourcing, leveraging India’s IT and BPM strengths.

The agreement also ???????????es higher FDI limits in banking and insurance and allows up to 15 bank branches over four years, compared with 12 under existing GATS norms. These commitments are expected to boost Indian financial services exports and encourage New Zealand institutions to enter India’s growing market.

Currently, Bank of Baroda and Bank of India operate subsidiaries in New Zealand, while New Zealand has no banking or insurance presence in India. The agreement is expected to catalyse greater bilateral investment, institutional presence, and services trade in the financial sector.