THEBUSINESSBYTES
BUREAU
NEW
DELHI, OCTOBER 19, 2026
India’s free trade
agreement (FTA) with New Zealand will come into force on October 20, coinciding
with Vijaya Dashami, opening up a duty-free market for Indian goods and
creating fresh export opportunities for micro, small and medium enterprises
(MSMEs), farmers, artisans and women entrepreneurs.
Announcing the
implementation of the agreement at a virtual conference on Monday, Commerce and
Industry Minister Piyush Goyal and New Zealand’s Trade and Investment Minister
Todd McClay said the pact would strengthen bilateral economic ties, boost trade
and investment, and create employment opportunities in both countries.
Under the agreement,
New Zealand has eliminated customs duties on all tariff lines covering Indian
exports, removing peak tariffs of up to 10 per cent. The pact is expected to
benefit labour-intensive sectors such as textiles, apparel, leather, footwear,
gems and jewellery, besides engineering goods, automobiles, chemicals,
pharmaceuticals, agricultural products and processed foods.
“This is a winning partnership, both on and
off the field,” Goyal said, emphasising that the agreement would be judged by
the opportunities it creates and its impact on people's lives in both
countries.
The minister said 100
per cent duty-free access to the New Zealand market would open significant
opportunities for Indian exporters, particularly MSMEs, artisans, farmers and
women entrepreneurs.
The agreement also
combines expanded market access with safeguards for Indian agriculture. A
dedicated Agricultural Productivity Partnership will support farmers through
technology transfer, training, improved cultivation practices and action plans
for apples, kiwifruit and honey.
New Zealand will
provide technical assistance for establishing Centres of Excellence for these
products, with initiatives aimed at improving orchard management, reducing
post-harvest losses and raising farm productivity.
The pact links
tariff-rate quotas for apples, kiwifruit and Mānuka honey to the implementation
of the agricultural action plans, under the oversight of a Joint Agriculture
Productivity Council. Sensitive products, including dairy, sugar, edible oils
and key agricultural commodities, have been excluded from tariff concessions to
protect farmers, dairy producers, fisherfolk and rural communities.
In a significant
boost to investment ties, New Zealand has committed to facilitate USD 20
billion in investments into India, which are expected to support agriculture,
manufacturing, infrastructure and start-ups, besides generating employment and
encouraging innovation.
The entry into force
of the agreement will also be marked by the flagging off of the first-ever
export of a JCB machine from India to New Zealand, underscoring the potential
for Indian engineering and manufacturing products in the overseas market.
Further export
initiatives covering agriculture, gems and jewellery, engineering, sporting
goods, footwear and leather are also planned to showcase opportunities under
the pact.
McClay described the
agreement as a watershed moment in bilateral relations, saying it would give
New Zealand exporters access to India's 1.4 billion consumers and one of the
world's fastest-growing major economies.
He said New Zealand's
existing exports to India would benefit from the elimination or substantial
reduction of tariffs, while Indian goods entering New Zealand would enjoy
duty-free access, placing Indian exporters on a level playing field with
suppliers from other countries with which New Zealand has trade agreements.
The agreement also
provides a substantial opening for Indian services exports. New Zealand has
offered market access in around 118 sectors and Most-Favoured-Nation
commitments in about 139 sub-sectors, along with dedicated access for health
and traditional medicine services, including Ayurveda, Yoga and other AYUSH
systems.
Indian professionals
will have access to an annual quota of 5,000 Temporary Employment Entry visas,
while 1,000 Working Holiday visas will be available each year. The agreement
also provides for no numerical cap on Indian students, with post-study work
rights of up to three years for STEM bachelor's and master's graduates and up
to four years for doctoral scholars.
Department of
Commerce Secretary Rajesh Agrawal said the agreement would help deepen the
economic partnership and create opportunities for greater New Zealand
investment in India.
“The job is now to translate this opportunity
into actual benefits for our people,” he said, adding that the government was
working with industry and trade associations to take the message to districts
across the country.
The pact also seeks
to strengthen opportunities for MSMEs, women-led enterprises, start-ups,
artisans and first-generation entrepreneurs through zero-duty access, faster
customs procedures and improved trade-related information and business
linkages. New Zealand has further committed to facilitating the registration of
Indian Geographical Indications, potentially benefiting traditional industries
and rural artisans.
Robust rules of
origin, a bilateral safeguard mechanism and anti-circumvention provisions have
been incorporated to ensure that the benefits accrue to genuine Indian
exporters.
Negotiations for the
agreement were launched on March 16, 2025, and concluded on December 22, 2025.
The pact was signed on April 27, 2026.
The agreement 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 around Rs 35,000 crore, by 2030.
The pact aligns with India's broader ambition of achieving Viksit Bharat by 2047 through stronger global partnerships, higher export competitiveness, expanded manufacturing capacity and inclusive economic growth.
