THEBUSINESSBYTES
BUREAU
NEW
DELHI, SEPTEMBER 17, 2026
India on Thursday
welcomed the passage by the New Zealand Parliament of legislation giving effect
to the India-New Zealand Free Trade Agreement, a key step towards bringing the
pact into force and opening duty-free access for 100 per cent of Indian exports
to the New Zealand market.
The legislation was
passed on September 16, marking an important milestone in the implementation of
the FTA signed in New Delhi on April 27, 2026, and reflecting the commitment of
both countries to deepen and broaden their economic partnership.
The agreement is
expected to create significant new opportunities for Indian exporters, with
duty-free access for all Indian exports to New Zealand from the date of its
entry into force. Key sectors that stand to benefit include textiles and
apparel, leather and footwear, engineering goods, pharmaceuticals, agriculture
and processed food products.
In return, the pact
provides enhanced and preferential access to the Indian market for New Zealand
products, including wood, wool, sheep meat and leather raw hides.
The development
follows Prime Minister Narendra Modi's visit to New Zealand in July 2026, the
first visit by an Indian Prime Minister to the country in four decades. During
the visit, the two Prime Ministers reaffirmed their commitment to strengthening
economic engagement and stressed the importance of early implementation of the
trade agreement.
India and New Zealand
have longstanding relations underpinned by strong people-to-people ties and
growing cooperation in areas ranging from trade and investment to agriculture,
education, sports and technology.
Beyond goods trade,
the FTA provides new opportunities in services and investment, while
strengthening pathways for professionals, students and youth. The agreement
also envisages facilitating USD 20 billion of investment into India.
The pact further provides for closer bilateral cooperation in areas such as agricultural productivity, pharmaceuticals and medical devices, traditional medicine and AYUSH, technology and trade facilitation.
India and New Zealand are now working to complete their respective domestic processes and facilitate the early entry into force of the agreement, which is expected to give a fresh impetus to bilateral commerce and create new opportunities for businesses and communities in both countries.