India-New Zealand Free Trade Agreement Set to Take
Effect on October 20, 2026
Ø Commerce and Industry Minister Piyush
Goyal Says India-New Zealand FTA Will Give Fresh Momentum to Bilateral Trade,
Technology and Investment Ties
Ø Zero Duty on 100% of India’s Exports
to New Zealand from Day One
Ø Gains from Farms to Factories as
Textiles, Leather, Footwear, Engineering Goods and Agri-Processing Enter New
Zealand Duty Free
Ø New Horizons for India’s Youth,
Women, Farmers and MSMEs as Jobs, Investment and Mobility Get a Boost
·
Implementation Date:
The India-New Zealand Free Trade Agreement (FTA) will officially enter into
force on October 20, 2026, coinciding with Dussehra, following the
completion of domestic ratification and internal processes (including passage
in the New Zealand Parliament on September 16).
·
Duty-Free Access for Indian Exports:
From Day One, 100% of India's exports will enter New Zealand completely
duty-free, eliminating peak tariffs of up to 10% on key labor-intensive sectors
like textiles, apparel, leather, footwear, gems and jewellery,
and engineering goods. Indian manufacturers will also gain tariff-free access
to raw inputs like wooden logs, coking coal, and metal scrap.
·
Safeguards for Indian Agriculture:
India has protected its domestic farmers by excluding sensitive items—such as
dairy, animal meat (except sheep), sugar, edible oils, and key agricultural
commodities—from tariff concessions. Calibrated access for New Zealand apples,
kiwifruit, and Manuka honey is structured via Tariff Rate Quotas and seasonal
windows.
·
Investment & Economic Targets:
New Zealand has committed to facilitating $20 billion in investments
into India over 15 years, targeting agriculture, infrastructure, manufacturing,
and startups. Both nations are aiming to double bilateral trade in goods and
services to NZ$7 billion by 2030.
·
Services & Mobility Boost:
The agreement expands market access across ~118 service sectors (such as IT and
professional services), introduces a dedicated quota of 5,000 Temporary
Employment Entry visas for skilled Indians annually, grants 1,000 Working
Holiday visas for young Indians, and offers uncapped student mobility with
extended post-study work rights.
·
Regulatory Streamlining:
New Zealand will now accept inspection approvals from globally trusted
regulators (like the US FDA, EMA, and UK MHRA) for Indian pharmaceutical and
medical device exporters, significantly reducing time-to-market.
[ABS News Service/22.09.2026]
In a defining step forward for trade
and economic partnership, the India–New Zealand Free Trade Agreement, is going
to enter into force on 20th October 2026. The FTA was signed on 27th
April 2026 at Bharat Mandapam, New Delhi, by Union Minister of Commerce and
Industry Piyush Goyal and New Zealand’s Minister for Trade and Investment Hon.
Todd McClay.
On 21 September, 2026, the Union
Minister of Commerce and Industry Piyush Goyal and New Zealand’s Minister for
Trade and Investment Hon. Todd McClay spoke via virtual conference and
announced the date for entering into force of the agreement following the
completion of internal processes in both countries. The legislation was passed
by the New Zealand Parliament on 16th September, 2026.
Under the visionary leadership of
Hon’ble Prime Minister Narendra Modi, India and New Zealand have continued to
deepen and expand their engagement. The visit of Hon’ble Prime Minister
Narendra Modi Ji to New Zealand in July 2026, the first visit by an Indian
Prime Minister to New Zealand in four decades, provided further momentum to the
bilateral relationship and emphasised the importance of the early
implementation of the India-New Zealand FTA. The visit also marked an important
elevation in the relationship, with India and New Zealand announcing a
Strategic Partnership and endorsing the India-New Zealand Strategic
Partnership: Roadmap to 2030 as a shared framework to guide cooperation over
the next four years including an aspirational goal of doubling bilateral
two-way trade in goods and services to NZ$7 billion (approximately
₹35,000 crore) by 2030. Operationalisation of the FTA will serve as a key
enabler for translating the ambitions of the Strategic Partnership: Roadmap to
2030 into tangible economic outcomes.
Highlighting the significance of the
milestone, the Hon’ble Commerce & Industry Minister Piyush Goyal said “The
India-New Zealand FTA would provide fresh momentum to the bilateral
partnership, create greater synergies between the two economies, enable
economies of scale and contribute to enhancing overall competitiveness”.
Emphasising the symbolism of the chosen date, he said, “We have chosen the
auspicious day Dussshera- Vijay Dashmi for the entry
into force of the India-New Zealand FTA. I am confident that the entry into
force will overcome all hurdles that stood between our trade, technology and
investment relationship, and will ensure prosperity for people of both sides”.
Hon. Todd McClay, Minister for Trade
and Investment, noted that at a time of uncertainty in trade and rising
tariffs, India New Zealand FTA gives confidence. With hard work, we have
delivered one of the highest quality agreements concluded in nine months, which
will provide tangible benefits to businesses and stakeholders on both sides. He
highlighted that the Agreement is a great foundation for both Governments to
cooperate in greater areas, be it people-to-people cooperation, culture,
sports, business or investment and we will work together to address challenges
faced by businesses to create greater employment opportunities on both sides.
From the entry into force, every
single tariff line covering 100% of India's exports to New Zealand becomes
duty-free, offering Indian industry a level playing field that puts it on par
with New Zealand's other trading partners. Sectors that power livelihoods
across the country - textiles and apparel, leather and footwear, gems and
jewellery, engineering goods and processed foods - stand to gain immediately as
New Zealand's peak tariffs of up to 10% are eliminated. Indian manufacturers
will also benefit from tariff-free access to critical inputs such as wooden
logs, coking coal and metal scrap, sharpening their competitive edge in global
markets.
At the same time, the Government has
safeguarded the interests of Indian farmers by keeping sensitive products such
as dairy, animal meat (except sheep), key agricultural commodities, sugar and
edible oils excluded from tariff concessions. A calibrated market access has
been structured for New Zealand’s apples, kiwifruit and Manuka honey through
Tariff Rate Quotas with Minimum Import Price and seasonal import windows,
alongside safeguards to protect domestic farmers. The Agreement establishes an
Agriculture Productivity Partnership to strengthen cooperation in agriculture,
with dedicated Action Plans for kiwifruit, apples and honey aimed at improving
productivity, quality and farmer incomes in India. Centres of Excellence will
be established for orchard management, post-harvest practices, supply chains,
food safety and sustainable beekeeping, facilitating the exchange of knowledge,
technology and capacity. A Joint Agriculture Productivity Council will monitor
that the market access is complemented by cooperation activities by New Zealand
under Agriculture Productivity Partnership.
The FTA also sets the stage for
deeper investment gains for India, with New Zealand's commitment to facilitate
USD 20 billion in investment into India. This investment by New Zealand will
benefit Indian agriculture, manufacturing, infrastructure and start-ups.
For India's rapidly growing services
sector, the Agreement creates a stronger platform for Indian companies and
professionals to access the New Zealand market and expand their international
footprint spanning roughly 118 sectors including IT, professional services,
audio-visual, construction and tourism, with Most-Favoured Nation treatment
locked in across about 139 sub-sectors, mobility opportunity through a
dedicated quota of 5,000 Temporary Employment Entry visas for skilled Indians
and 1,000 Working Holiday visas each year for young Indians. The agreement also
provides uncapped student mobility with post-study work rights of up to three
years for STEM graduates and four years for doctoral scholars.
India's pharmaceutical and medical
device exporters gain a long-awaited edge as New Zealand begins accepting
inspection approvals from globally trusted regulators such as the US FDA, EMA,
UK MHRA and Health Canada, cutting long waiting time and speeding up market
entry.
With bilateral merchandise trade
already at around USD 1.1 billion in 2025-26, the entry into force of the
India-New Zealand FTA is set to give a decisive push to two-way trade,
investment and job creation in the years ahead. Anchored in the vision of Viksit
Bharat @2047, the Agreement stands as another testament to India's growing
network of partnerships with developed economies - one that places farmers,
women, youth, artisans and MSMEs at the very heart of its gains.
Link for India
New Zealand FTA Signing - https://www.pib.gov.in/PressReleasePage.aspx?PRID=2255914®=3&lang=1