India–New Zealand FTA to Take Effect on October 20, Offering 100% Duty-Free Access for Indian Exports.
New Delhi:
The India–New Zealand Free Trade Agreement (FTA) will come into force on October 20, 2026, coinciding with Vijay Dashmi, opening new opportunities for Indian exporters through 100 per cent duty-free access to the New Zealand market. The agreement is expected to benefit micro, small and medium enterprises (MSMEs), farmers, artisans, women entrepreneurs and manufacturers while strengthening bilateral trade and investment ties.
Union Minister of Commerce and Industry Piyush Goyal and New Zealand Minister for Trade and Investment Todd McClay jointly announced the agreement’s entry into force during a virtual conference on Sunday.
Goyal said the agreement would create significant opportunities for Indian exporters and strengthen economic cooperation between the two countries. He emphasised that the success of the partnership would be measured by the opportunities it generated and its impact on people’s lives.
He said the agreement combined new opportunities for farmers with appropriate safeguards. An Agricultural Productivity Partnership, including action plans for apples, kiwifruit and honey, would promote improved orchard management, reduce post-harvest losses and enhance agricultural productivity.
McClay described the agreement as a landmark in bilateral relations, saying it would open access to India’s market of 1.4 billion consumers for New Zealand exporters. He added that Indian goods would enter New Zealand duty-free, placing Indian exporters on a level playing field with exporters from New Zealand’s other free trade agreement partners.
Department of Commerce Secretary Rajesh Agrawal said the agreement would deepen economic cooperation and create opportunities for New Zealand investment in India. He emphasised the need to translate the agreement’s provisions into tangible benefits for businesses and people across the country.
Duty-Free Access for Indian Products
New Zealand has eliminated customs duties across all tariff lines covering Indian exports, removing peak tariffs of up to 10 per cent. Major beneficiaries are expected to include textiles, apparel, leather, footwear, gems and jewellery, engineering goods, automobiles and auto components, chemicals, pharmaceuticals, agricultural products and processed foods.
Duty-free access for wooden logs, coking coal and metal waste and scrap is also expected to strengthen manufacturing and MSME supply chains. The pharmaceutical and medical device sectors are likely to benefit from streamlined regulatory procedures.
The agreement also provides Indian service providers with expanded opportunities in New Zealand. The country has offered market access in around 118 sectors and Most-Favoured-Nation commitments in approximately 139 sub-sectors. For the first time, dedicated access has also been provided for health and traditional medicine services, including Ayurveda, Yoga and other AYUSH systems.
New Opportunities for Youth and Professionals
The agreement provides Indian youth and professionals with an annual quota of 5,000 Temporary Employment Entry visas and 1,000 Working Holiday visas.
Indian students will face no numerical cap, while post-study work opportunities will extend to three years for graduates with bachelor’s and master’s degrees in STEM fields and up to four years for doctoral scholars.
The provisions are expected to create new opportunities for Indian professionals, students and skilled workers seeking international exposure.
Agricultural Cooperation and Himachal Pradesh
Agricultural productivity is a key component of the agreement, with cooperation extending beyond tariff concessions to technology transfer, training and improved farming practices.
New Zealand will provide technical assistance for establishing Centres of Excellence for kiwifruit, apples and honey. Under the kiwifruit action plan, Phase I sites have been identified at Pfutsero in Nagaland and Magra in Uttarakhand.
Two additional Centres of Excellence for apples are proposed in Himachal Pradesh and Uttarakhand, while centres for honey are envisaged in Uttar Pradesh and West Bengal.
These initiatives aim to improve cultivation practices, enhance productivity and reduce post-harvest losses, potentially strengthening farmers’ incomes.
Tariff Rate Quotas for apples, kiwifruit and Mānuka honey have been linked to the implementation of the respective action plans under the oversight of a Joint Agriculture Productivity Council. The arrangement is intended to connect market access with agricultural development.
To protect domestic farmers, dairy producers, fisherfolk and rural communities, sensitive products, including dairy, sugar, edible oils and key agricultural commodities, have been excluded from tariff concessions. Rules of Origin, bilateral safeguards and anti-circumvention provisions have also been incorporated to ensure that the agreement benefits genuine Indian exporters.
New Zealand to Facilitate USD 20 Billion Investment
New Zealand has committed to facilitate USD 20 billion in investment into India. The proposed investment is expected to support agriculture, manufacturing, infrastructure and start-ups, while encouraging innovation, entrepreneurship and employment generation.
The agreement also seeks to improve opportunities for MSMEs, women-led enterprises, start-ups, artisans and first-generation entrepreneurs by reducing export costs, improving access to trade-related information and strengthening links with New Zealand’s small-business ecosystem.
New Zealand has further committed to facilitating the registration of Indian Geographical Indications, potentially helping traditional industries and rural artisans protect products associated with their regions.
On the occasion, Goyal flagged off India’s first-ever export of a JCB machine to New Zealand. Additional export flag-offs covering agriculture, gems and jewellery, engineering, sporting goods, footwear and leather are also planned for the agreement’s entry into force.
Representatives from industry in both countries participated in the virtual event and discussed opportunities in services, engineering, footwear, agriculture and other sectors.
The negotiations for the FTA were launched on March 16, 2025, and concluded on December 22, 2025. The agreement was signed on April 27, 2026.
It supports the India–New Zealand Strategic Partnership: Roadmap to 2030, which sets an aspirational target of doubling bilateral trade in goods and services to NZ$7 billion, equivalent to approximately ₹35,000 crore, by 2030.
The agreement is also aligned with India’s vision of Viksit Bharat 2047, with a focus on expanding trade, strengthening manufacturing, generating employment and creating opportunities for farmers, entrepreneurs, women and young professionals.
