The India-New Zealand Free Trade Agreement (FTA) will come into force from October 20, 2026, following the completion of domestic processes in both countries.
Union Commerce and Industry Minister Piyush Goyal and New Zealand Minister for Trade and Investment Todd McClay announced the date during a virtual meeting on Monday. New Zealand’s Parliament passed the legislation giving effect to the agreement on September 16. New Zealand formally ratified the agreement on September 21.
The FTA was signed by Goyal and McClay in New Delhi on April 27, 2026. The agreement provides for duty-free access from the first day for 100 per cent of India’s exports to New Zealand, according to the Commerce Ministry.
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 can be as high as 10 per cent.
The agreement also provides tariff-free access to certain critical inputs, including wooden logs, coking coal and metal scrap, according to the Commerce Ministry.
Sensitive Indian agricultural products, including dairy, animal meat except sheep meat, key agricultural commodities, sugar and edible oils, have been kept outside tariff concessions.
For products such as apples, kiwifruit and Manuka honey, the agreement provides calibrated market access through tariff-rate quotas, minimum import price provisions and seasonal import windows.
The agreement also provides for an Agriculture Productivity Partnership between the two countries, with proposed cooperation on kiwifruit, apples and honey. It includes plans for cooperation on orchard management, post-harvest practices, supply chains, food safety and sustainable beekeeping.
New Zealand has also committed to facilitate USD 20 billion in investment into India, with potential investment across sectors including agriculture, manufacturing, infrastructure and startups.
The FTA provides market access for Indian services across around 118 sectors, including IT, professional services, audio-visual services, construction and tourism. It also includes mobility provisions, including a dedicated quota of 5,000 Temporary Employment Entry visas for skilled Indian workers and 1,000 Working Holiday visas annually for young Indians.
The agreement provides for student mobility, including post-study work rights of up to three years for STEM graduates and four years for doctoral scholars, according to the Commerce Ministry.
The agreement also includes provisions related to pharmaceuticals and medical devices, including acceptance by New Zealand of inspection approvals from regulators such as the US FDA, European Medicines Agency, UK MHRA and Health Canada, aimed at facilitating market access.
Speaking about the agreement, Piyush Goyal said the FTA would provide fresh momentum to bilateral trade, technology and investment ties. He said the agreement would also create greater synergies between the two economies and contribute to enhancing competitiveness.
India and New Zealand had signed the agreement in April after negotiations concluded in December 2025. The two countries also elevated their relationship to a Strategic Partnership in July and adopted a Roadmap to 2030, which includes an ambition to double bilateral trade in goods and services to NZ$7 billion by 2030.
According to the Commerce Ministry, bilateral merchandise trade stood at around USD 1.1 billion in 2025-26.
