India-New Zealand FTA Opens Zero-Duty Trade
The agreement removes tariffs on Indian exports to New Zealand and expands opportunities for manufacturers, service providers and skilled professionals.
The India-New Zealand Free Trade Agreement (FTA) came into force on October 20, 2026, giving Indian exporters zero-duty access across all tariff lines in the New Zealand market. The agreement is intended to improve market access, strengthen bilateral economic ties and expand trade in goods and services.
The removal of import duties is expected to benefit Indian sectors including textiles and apparel, leather and footwear, engineering goods, pharmaceuticals, processed food, marine products, plastics and rubber. New Zealand's previous tariffs on some Indian goods reached up to 10%, creating additional costs for exporters.
The agreement also provides Indian manufacturers with tariff-free access to selected industrial inputs, including wooden logs, coking coal and metal scrap. Faster customs clearance and digital certification provisions are intended to reduce trade-related delays and administrative costs.
India will extend tariff concessions on around 70% of its tariff lines to New Zealand, while maintaining exclusions for sensitive sectors. These include dairy products, sugar, several pulses and selected agricultural and industrial products. Imports of certain goods, including apples, kiwifruit and Manuka honey, will be subject to specified market-access arrangements such as tariff-rate quotas.
New Zealand has committed to facilitating $20 billion in investment into India over 15 years. The two countries have also set an aspirational target of increasing bilateral trade in goods and services to NZ$7 billion, equivalent to approximately ₹35,000 crore, by 2030.
The agreement extends beyond merchandise trade. New Zealand will open 118 services sectors and subsectors to Indian service providers, covering areas such as information technology, professional services, telecommunications, construction, education, financial services and tourism. It also includes provisions for skilled Indian professionals, including 5,000 temporary employment entry visas and 1,000 working-holiday visas annually.
The pact also provides for cooperation in agriculture, productivity, education and professional mobility. An agricultural partnership is intended to support work in areas such as orchard management, post-harvest practices and supply chains. The agreement's impact will depend on how businesses use the new market-access provisions and convert them into actual exports, investment and employment.
India and New Zealand signed the agreement on April 27, 2026, after negotiations were revived in 2025. With implementation now underway, exporters and businesses will be watching whether lower tariffs, simplified procedures and expanded services access help increase trade between the two countries.