India-New Zealand FTA to come into force next month, grants 100% duty-free access to Indian exports

The India-New Zealand free trade agreement (FTA) will come into force from next month, PTI quoted an official as saying on Thursday.

India and New Zealand had signed the FTA on April 27 at Bharat Mandapam in New Delhi to boost two-way commerce in goods and services and promote investments. Commerce and Industry Minister Piyush Goyal and New Zealand's Trade and Investment Minister Todd McClay signed the pact in the presence of New Zealand Prime Minister Christopher Luxon.

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The pact will come into force next month on a mutually agreed date, the official told PTI.

Negotiations for the FTA were relaunched in March 2025 during Luxon's visit to India and concluded in December 2025 after five formal rounds of talks, nearly a decade and a half after the two countries first began discussions on a trade pact in 2010.

The FTA provides duty-free access for 100 per cent of India's exports to New Zealand from the date the agreement enters into force, covering more than 8,200 tariff lines across sectors such as textiles, apparel, leather, footwear, engineering goods, processed foods and pharmaceuticals.

Earlier, New Zealand maintained peak tariffs of up to 10 per cent on key Indian exports, including ceramics, carpets, automobiles and auto components.

In return, India will liberalise about 70 per cent of its tariff lines, covering nearly 95 per cent of New Zealand's exports by value. Around 57 per cent of these will become duty-free immediately, while the rest will be phased out over time. Sensitive sectors such as dairy and select agricultural products have been kept out of India's commitments.

New Zealand exporters of wool, wine, coal, sheep meat and forestry and wood products are expected to be among the biggest beneficiaries, along with horticultural exports such as kiwifruit, apples, avocados and blueberries. The agreement also includes a plan for cooperation in agriculture to support Indian farmers in growing kiwis and apples.

New Zealand has committed to invest (FDI) USD 20 billion over 15 years.

The pact also opens a skilled employment pathway for Indian professionals through a new Temporary Employment Entry Visa, with a quota of 5,000 visas, along with expanded mobility provisions for students and professionals.

Also read: Explained | What’s inside India–New Zealand FTA: Tariff cuts, services push, farm safeguards & more

The two countries are aiming to double bilateral trade to USD 5 billion within five years. Bilateral merchandise trade stood at about USD 1.3 billion in 2024-25, with total trade in goods and services at USD 2.4 billion in 2024.

The India-New Zealand FTA is among a string of trade pacts India has signed in the past five years, following agreements with Mauritius, the UAE, Australia, the European Free Trade Association (EFTA) bloc and the UK. Of these, the pacts with the UK, Oman and New Zealand are yet to come into force.