Landmark trade pact to eliminate duties on 100% of India’s exports to New Zealand; opens new opportunities in goods, services, investment and mobility
New Delhi : The India–New Zealand Free Trade Agreement (FTA) will enter into force on October 20, 2026, marking a significant milestone in the economic and trade relationship between the two countries.
The announcement was made during a virtual meeting between Union Minister of Commerce and Industry Piyush Goyal and New Zealand Minister for Trade and Investment Todd McClay, following the completion of the required domestic processes in both countries. The agreement was signed on April 27, 2026, at Bharat Mandapam, New Delhi, by the two ministers. The New Zealand Parliament approved the implementing legislation on September 16, 2026.
The agreement follows the strengthening of bilateral ties during Prime Minister Narendra Modi’s visit to New Zealand in July 2026, his first visit to the country in four decades. During the visit, India and New Zealand announced a Strategic Partnership and endorsed the India–New Zealand Strategic Partnership: Roadmap to 2030, which includes an aspirational target of doubling bilateral trade in goods and services to NZ$7 billion, approximately ₹35,000 crore, by 2030.
100% of Indian exports to New Zealand to become duty-free
A major feature of the FTA is that, from the date of implementation, 100% of India’s exports to New Zealand will receive duty-free access. Indian sectors including textiles and apparel, leather and footwear, gems and jewellery, engineering goods and processed foods are expected to benefit from the elimination of New Zealand’s tariffs, which currently reach up to 10%.
Indian manufacturers will also gain duty-free access to key industrial inputs such as wooden logs, coking coal and metal scrap, potentially improving cost competitiveness.
At the same time, India has kept several sensitive sectors outside tariff concessions to protect domestic interests. These include dairy, animal meat except sheep, key agricultural commodities, sugar and edible oils.
Market access for New Zealand’s apples, kiwifruit and Manuka honey will be managed through calibrated Tariff Rate Quotas (TRQs), along with minimum import prices, seasonal import windows and safeguard provisions.
Focus on agricultural productivity
The agreement also establishes an Agriculture Productivity Partnership between the two countries. Dedicated action plans for kiwifruit, apples and honey will focus on productivity, quality improvement and farmer incomes.
The partnership will facilitate cooperation in areas such as orchard management, post-harvest practices, supply chains, food safety and sustainable beekeeping, including the establishment of Centres of Excellence and a Joint Agriculture Productivity Council.
$20 billion investment commitment
The FTA also provides a framework for strengthening investment ties, with New Zealand committing to facilitate USD 20 billion in investment into India. The investment is expected to create opportunities across areas including agriculture, manufacturing, infrastructure and start-ups.
For India’s services sector, the agreement provides market access across approximately 118 sectors, covering areas such as IT, professional services, construction, tourism and audio-visual services. Most-Favoured-Nation treatment has also been secured across around 139 sub-sectors.
The agreement includes mobility provisions, including a dedicated quota of 5,000 Temporary Employment Entry visas for skilled Indian professionals and 1,000 Working Holiday visas annually for young Indians.
It also provides for expanded student mobility, including post-study work rights of up to three years for STEM graduates and four years for doctoral scholars.
Boost for pharmaceuticals and medical devices
Indian pharmaceutical and medical-device exporters are also expected to benefit from provisions enabling New Zealand to accept inspection approvals from regulators including the US FDA, European Medicines Agency (EMA), UK MHRA and Health Canada. The measure is aimed at reducing regulatory delays and facilitating faster market access.
Speaking on the occasion, Commerce and Industry Minister Piyush Goyal said the FTA would provide fresh momentum to the bilateral partnership, create greater economic synergies, enable economies of scale and strengthen competitiveness.
Highlighting the significance of October 20, which falls on Dussehra/Vijay Dashami, Goyal said the agreement’s implementation would help overcome barriers to deeper trade, technology and investment ties between the two countries.
New Zealand Minister Todd McClay said the agreement provides confidence at a time of uncertainty in global trade and rising tariffs. He described it as a high-quality agreement concluded within nine months and said it would create tangible opportunities for businesses and stakeholders in both countries.
Bilateral merchandise trade between India and New Zealand stood at around USD 1.1 billion in 2025–26. With the FTA entering into force, both countries are seeking to expand trade, investment, employment and business cooperation, while advancing the broader objectives of their Strategic Partnership Roadmap to 2030.
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