The India-New Zealand Free Trade Agreement (FTA) will enter into force on October 20, 2026, marking the beginning of a new era of trade and economic cooperation between the two countries.
Union Minister of Commerce and Industry Piyush Goyal announced the implementation date of the India-New Zealand FTA on Monday during a virtual interaction with New Zealand’s Minister for Trade and Investment, Todd McClay, in New Delhi.
India Gets 100% Duty-Free Export Access
Under this agreement, 100% of India’s exports to New Zealand will be duty-free from the date of implementation. Key sectors such as textiles and apparel, leather and footwear, gems and jewellery, engineering goods, and processed foods are expected to benefit, as duties of up to 10% will be eliminated. Indian industries will also be able to source inputs like wood logs, coking coal, and metal scrap without paying any duty.
India has retained tariff protection for sensitive sectors such as dairy, most animal meats, key agricultural products, sugar, and edible oils. Limited market access will be granted for New Zealand apples, kiwifruit, and Manuka honey through tariff-rate quotas, minimum import prices, and seasonal safeguard measures.
FTA to Boost Investment, Services and Mobility
This FTA includes a commitment from New Zealand to facilitate $20 billion in investment into India, which could benefit sectors such as agriculture, manufacturing, infrastructure, and startups. Indian service companies and professionals will gain better access to sectors like IT, professional services, construction, tourism, and audio-visual services.
The agreement also provides for 5,000 ‘Temporary Employment Entry Visas’ annually for skilled Indian workers and 1,000 ‘Working Holiday Visas’ for young Indians. Furthermore, it includes provisions for the unrestricted mobility of students, granting STEM graduates the right to work for up to three years and doctoral scholars for up to four years after completing their studies.
This agreement follows the elevation of India-New Zealand relations to the level of a Strategic Partnership and the adoption of a roadmap for 2030.
This roadmap includes an ambitious goal to double bilateral trade in goods and services to NZ$7 billion by 2030. Bilateral trade in goods stood at approximately USD 1.1 billion in 2025-26.
(PIB)
