India-New Zealand FTA to come into force on October 20, opens duty-free access for Indian exports

The India-New Zealand Free Trade Agreement (FTA) will come into force on October 20, Commerce and Industry Minister Piyush Goyal announced on Monday. The pact, signed by the two countries on April 27, will provide duty-free access for 100 per cent of Indian exports to New Zealand while offering calibrated market access to New Zealand products in India.

The agreement also includes a commitment by New Zealand to facilitate USD 20 billion of investment in India over 15 years, agricultural productivity partnerships and new pathways for Indian students, skilled professionals and young people seeking temporary work opportunities in New Zealand.

The pact is expected to deepen trade in goods and services, promote investment and expand cooperation in areas including agriculture, technology, skills, renewable energy, digital services and infrastructure.

New Zealand Parliament clears agreement

New Zealand's Parliament approved the legislation earlier this month, with the agreement receiving strong bipartisan support. The legislation was passed with the backing of the ruling National Party and the main opposition Labour Party.

New Zealand Prime Minister Christopher Luxon had said the agreement would give exporters greater access to India's consumer market and support business growth, employment and incomes in New Zealand.

Welcoming the parliamentary approval, Luxon said the agreement would open opportunities in the Indian market and allow New Zealand businesses to sell more products to Indian consumers.

India and New Zealand concluded negotiations on the FTA in December 2025 after five formal rounds of talks. Negotiations had formally begun on March 16, 2025, making it one of India's faster-concluded trade agreements. The pact was signed in New Delhi on April 27, 2026.

Duty-free access for Indian exports

Under the agreement, New Zealand will provide zero-duty access for 100 per cent of Indian exports from the date of entry into force. The arrangement is expected to improve the competitiveness of Indian goods in sectors such as textiles and apparel, leather and footwear, engineering products, pharmaceuticals, agriculture and processed foods.

India has offered tariff concessions on around 70 per cent of tariff lines, covering approximately 95 per cent of bilateral trade, while retaining protections for sensitive sectors.

Products such as dairy and several agricultural items have been excluded from tariff concessions. The protected list includes products such as milk, cream, cheese, yoghurt, whey, onions, sugar, certain vegetable products, edible oils and other sensitive goods.

Duties on 30 per cent of tariff lines covering products such as wood, wool, sheep meat and raw hides will be eliminated immediately. A further 35.60 per cent of tariffs will be phased out over three, five, seven or 10 years.

Some products, including wine, pharmaceutical drugs, polymers and certain aluminium, iron and steel products, will receive tariff reductions. Tariff-rate quotas will apply to selected products, including Mānuka honey, apples, kiwifruit and albumins.

For products such as apples, kiwifruit and honey, the agreement combines limited market access with agricultural cooperation and safeguards for domestic producers. The Indian Commerce Ministry has said the arrangements include tariff-rate quotas, minimum import prices and other calibrated safeguards.

$20 billion investment and agricultural cooperation

New Zealand has committed to facilitating USD 20 billion in investment in India over 15 years. The investment framework is intended to support manufacturing, infrastructure, services, innovation and job creation. The agreement also contains a mechanism allowing India to adjust market access if New Zealand does not fulfil its investment commitments.

Agricultural cooperation is another key component of the pact. India and New Zealand will work together to improve productivity and capabilities in sectors including kiwifruit, apples and honey.

The partnership covers planting material, research, technical assistance, orchard management, post-harvest practices, supply chains and food safety. Dedicated Centres of Excellence and action plans are intended to support technology adoption, productivity and farmer incomes.

The agreement also provides for cooperation in investment, research and innovation, technology, skills, renewable energy, digital services and infrastructure, alongside provisions covering customs procedures, intellectual property, sustainable development and MSME cooperation.

Services and mobility gains for Indian professionals

New Zealand has made market access commitments to India across 118 services sectors and provided Most-Favoured Nation treatment in 139 sectors and sub-sectors. The sectors covered include IT and IT-enabled services, professional services, telecommunications, construction, education, financial services, tourism and travel-related services.

The agreement establishes a Temporary Employment Entry visa pathway for 5,000 skilled Indian professionals at any given time, allowing stays of up to three years. The pathway covers occupations including AYUSH practitioners, yoga instructors, Indian chefs and music teachers, along with professionals in IT, engineering, healthcare, education and construction.

A Working Holiday Visa arrangement will allow 1,000 young Indians each year to travel to New Zealand for up to 12 months. The scheme is intended to promote youth mobility, work experience and people-to-people ties.

Student opportunities and post-study work

The FTA also creates a dedicated framework for Indian student mobility. Indian students will be guaranteed at least 20 hours of work a week while studying in New Zealand, with extended post-study work opportunities.

The Commerce Ministry says STEM bachelor's and master's graduates can receive post-study work opportunities of up to three years, while doctorate holders can receive up to four years. The agreement also removes numerical caps for Indian students under the dedicated student mobility arrangement.

The pact further strengthens cooperation in pharmaceuticals and medical devices, including streamlined regulatory access through acceptance of certain inspection reports from comparable regulators. It also includes cooperation in health and traditional medicine, providing pathways for areas including Ayurveda and yoga.

The India-New Zealand FTA is designed to provide a broader framework for trade in goods and services, investment, agriculture and professional mobility, while strengthening cooperation in technology, innovation and other emerging areas. The two governments have presented the agreement as a framework for expanding bilateral economic ties and integrating businesses into global value chains.