India - New Zealand Free Trade Agreement (FTA): 100% Exports Duty-Free from Oct 20, 2026

India and New Zealand have completed the ratification process for their Free Trade Agreement (FTA), which was signed on 27 April 2026 at Bharat Mandapam, New Delhi. The agreement will officially enter into force on 20 October 2026, coinciding with Dussehra. Commerce and Industry Minister Piyush Goyal announced the implementation date after both countries completed their domestic procedures.

What is a Free Trade Agreement?

A Free Trade Agreement (FTA) is a pact between two or more countries to reduce or eliminate tariffs and other trade barriers on goods and services. It aims to make cross-border trade easier, improve market access, encourage investment and strengthen economic relations between participating countries.

100% Duty-Free Access for Indian Exports -

One of the most significant provisions is that 100% of India’s exports to New Zealand will receive duty-free access from the date the FTA enters into force. This means Indian products will no longer face New Zealand’s existing tariffs on these exports. New Zealand currently imposes tariffs of up to 10% on several Indian products, including ceramics, carpets, automobiles and auto components.

Sectors Expected to Benefit -

Indian sectors that are expected to gain from improved access to the New Zealand market include textiles and apparel, leather and footwear, gems and jewellery, engineering goods, processed food and agricultural products. Duty-free access is also expected to improve the competitiveness of Indian MSMEs and labour-intensive industries.

India’s Market Access to New Zealand Products -

The agreement is not a one-way tariff concession. India has agreed to reduce or remove import taxes (tariffs) on about 70% of the products covered by the agreement. These products account for about 95% of the total trade between India and New Zealand. However, sensitive sectors have been excluded to protect domestic producers.

Important exclusions include dairy products, onions, chickpeas and several other agricultural products, sugar, edible oils and certain other sensitive goods. This calibrated approach allows India to expand trade while retaining protection for vulnerable domestic sectors.

Investment Commitment -

New Zealand has committed to facilitate USD 20 billion of investment in India over 15 years. The investment commitment is expected to support areas such as agriculture, manufacturing, infrastructure, startups and emerging technologies.

Services and Professional Mobility -

The FTA also goes beyond merchandise trade. New Zealand has offered market access to India in around 118 services sectors, including IT, professional services, telecommunications, construction, education, financial services and tourism. It also provides a Temporary Employment Entry visa pathway with a quota of 5,000 for Indian professionals in specified occupations.

The agreement also provides post-study work opportunities for eligible Indian students in New Zealand, including up to three years for STEM (Science, Technology, Engineering and Mathematics) bachelor’s and master’s graduates and up to four years for doctoral scholars.

Why is the FTA Important?

The agreement is significant because it expands India’s access to a developed market while also creating opportunities for exports, investment, services and skilled professional mobility. For India, it can help diversify export destinations and strengthen economic ties with the Indo-Pacific region. For New Zealand, it provides preferential access to India’s large consumer market.