India-New Zealand FTA Takes Effect October 20
The India-New Zealand Free Trade Agreement will come into force on October 20, 2026, after both countries completed their ratification procedures. Commerce and Industry Minister Piyush Goyal said the agreement will provide duty-free access to 100% of Indian exports entering New Zealand from the first day.
Indian Exports Get 100% Duty-Free Access
New Zealand will eliminate tariffs across all Indian exports, benefiting sectors including textiles and apparel, leather and footwear, gems and jewellery, engineering goods, processed foods, ceramics, carpets, automobiles and auto components.
Several Indian products currently face New Zealand tariffs of up to 10%. Removing these duties is expected to improve the competitiveness of Indian exporters in the New Zealand market.
Indian manufacturers will also gain cheaper access to selected inputs, including wooden logs, coking coal and metal scrap.
India Protects Sensitive Agriculture Sectors
India will eliminate or reduce tariffs on around 95% of existing imports from New Zealand, with 57% becoming duty-free immediately.
However, sensitive Indian sectors including dairy, onions, chickpeas, peas, corn, almonds, artificial honey and sugar have been excluded from tariff concessions.
The agreement also provides preferential access for selected New Zealand products including apples, kiwifruit and wine under negotiated conditions.
New Zealand Pledges $20 Billion Investment
New Zealand has committed to facilitate investments worth $20 billion in India over the next 15 years, potentially supporting manufacturing, technology and other sectors.
India and New Zealand are targeting bilateral trade in goods and services of around NZ$7 billion, or approximately Rs 35,000 crore, by 2030.
The FTA was signed on April 27 following negotiations aimed at expanding trade, investment, services and economic cooperation between the two countries.
