New Delhi: The India-New Zealand Free Trade Agreement (FTA) will enter into force on October 20, 2026, marking a new phase in the trade and economic partnership between the two countries.
The agreement was signed on April 27, 2026, at Bharat Mandapam in New Delhi by Union Commerce and Industry Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay, according to an official statement.
The two ministers announced the implementation date during a virtual conference after both countries completed their respective internal processes. New Zealand’s Parliament passed the legislation giving effect to the agreement on September 16, 2026.
From the date of entry into force, 100% of India’s exports to New Zealand will receive duty-free access, covering every tariff line. The move is expected to benefit sectors including textiles and apparel, leather and footwear, gems and jewellery, engineering goods and processed foods, where New Zealand’s tariffs were as high as 10%.
Indian manufacturers will also get duty-free access to inputs such as wooden logs, coking coal and metal scrap.
At the same time, the agreement excludes sensitive products such as dairy, animal meat except sheep, key agricultural commodities, sugar and edible oils from tariff concessions, according to the Commerce Ministry.
Market access for New Zealand’s apples, kiwifruit and Manuka honey has been structured through tariff-rate quotas, along with minimum import prices and seasonal import windows. The agreement also provides for an Agriculture Productivity Partnership, with action plans for kiwifruit, apples and honey and cooperation through Centres of Excellence covering areas such as orchard management, post-harvest practices, supply chains, food safety and sustainable beekeeping.
The agreement also includes New Zealand’s commitment to facilitate USD 20 billion in investment into India. The investment is expected to support areas including agriculture, manufacturing, infrastructure and start-ups.
For India’s services sector, the FTA provides market access across around 118 sectors, including information technology, professional services, audio-visual services, construction and tourism.
Most-Favoured-Nation treatment has been locked in across about 139 sub-sectors.
The agreement also provides mobility opportunities for Indian professionals and students. These include a dedicated quota of 5,000 Temporary Employment Entry visas for skilled Indians and 1,000 Working Holiday visas annually for young Indians. It also provides post-study work rights of up to three years for STEM graduates and up to four years for doctoral scholars.
Indian pharmaceutical and medical device exporters are also expected to benefit from provisions aimed at facilitating faster market access, including New Zealand’s acceptance of inspection approvals from regulators such as the US FDA, EMA, UK MHRA and Health Canada.
The FTA follows a broader effort by India and New Zealand to deepen their bilateral economic relationship. During Prime Minister Narendra Modi’s visit to New Zealand in July 2026, the two countries announced a Strategic Partnership and endorsed a Strategic Partnership Roadmap to 2030. The roadmap includes an aspirational goal of doubling bilateral two-way trade in goods and services to NZD 7 billion by 2030.
Commenting on the agreement, Goyal said the FTA would provide fresh momentum to the bilateral partnership, create greater synergies between the two economies, enable economies of scale and contribute to overall competitiveness.
McClay said the agreement would provide confidence at a time of uncertainty in global trade and rising tariffs, while creating opportunities for businesses and stakeholders in both countries.
Bilateral merchandise trade between India and New Zealand was around USD 1.1 billion in 2025-26. The entry into force of the FTA is expected by the two governments to provide a framework for expanding trade, investment and economic cooperation between the two countries.
