India-New Zealand FTA Starts October 20
The trade pact will provide duty-free access for all Indian exports to New Zealand, with provisions for investment, services and skilled-worker mobility.
The India-New Zealand Free Trade Agreement (FTA) is scheduled to enter into force on October 20, 2026, following the completion of internal processes in both countries. The agreement is expected to strengthen bilateral trade, investment and cooperation across goods and services, according to the Ministry of Commerce and Industry.
Under the agreement, 100% of Indian exports to New Zealand will receive duty-free access from the first day of implementation. The tariff concessions cover sectors including textiles and apparel, leather and footwear, gems and jewellery, engineering goods and processed food, where New Zealand's tariffs had reached up to 10%.
Indian manufacturers will also gain tariff-free access to selected inputs, including wooden logs, coking coal and metal scrap. The government expects these provisions to support export competitiveness and provide opportunities for businesses, including micro, small and medium enterprises.
The agreement includes safeguards for sensitive Indian agricultural sectors. Dairy products, animal meat except sheep, key agricultural commodities, sugar and edible oils have been excluded from tariff concessions. Imports of New Zealand apples, kiwifruit and Manuka honey will be subject to calibrated market access arrangements, including tariff-rate quotas, minimum import prices and seasonal import windows.
New Zealand has committed to facilitating USD 20 billion in investment into India. The agreement also establishes an Agriculture Productivity Partnership to support cooperation in orchard management, post-harvest practices, supply chains, food safety and sustainable beekeeping, with the stated aim of improving productivity and farmer incomes.
India's services sector will receive improved opportunities to access the New Zealand market across approximately 118 sectors, including information technology, professional services, construction, tourism and audio-visual services. The agreement provides a dedicated quota of 5,000 Temporary Employment Entry visas for skilled Indians and 1,000 Working Holiday visas annually for young Indians.
The agreement also provides post-study work rights of up to three years for STEM graduates and four years for doctoral scholars. For pharmaceutical and medical-device exporters, New Zealand will accept inspection approvals from regulators including the US Food and Drug Administration, the European Medicines Agency, the UK's Medicines and Healthcare products Regulatory Agency and Health Canada.
Bilateral merchandise trade between India and New Zealand stood at around USD 1.1 billion in FY2025-26, according to the government release. The agreement's implementation will be closely watched for its impact on export growth, investment flows, employment opportunities and trade between the two countries.