India-New Zealand FTA to Take Effect From October 20, 2026

The India-New Zealand FTA will come into effect on October 20, 2026, heralding a new era of trade between India and New Zealand. India and New Zealand have signed the agreement, which came into force after it was ratified officially by both parties. The agreement offers Indian exporters duty-free access on 100 percent of tariff lines in New Zealand at the start. It further includes aspects such as services, investment, mobility of skills and education while offering protection to India’s sensitive agriculture sectors. The FTA will open up new avenues for exporters, MSMEs, professionals, and students.

When Will the India-New Zealand FTA be Operational?

The FTA will take effect from October 20, 2026. It was signed on April 27, 2026, by Commerce and Industry Minister Piyush Goyal and New Zealand Trade and Investment Minister Todd McClay in New Delhi.

New Zealand has now enacted legislation to implement the FTA, which was completed after the respective countries’ domestic process.

Access for Indian Exports to Be Completely Duty-Free

One of the major features of the agreement is that New Zealand has decided to eliminate all tariffs on 100% of Indian exports starting on the day when the agreement takes effect.

It includes sectors like textiles and garments, leather and footwear, gems and jewelry, engineering goods, processed foods. Indian industries will have access to duty-free supplies of several inputs like wooden logs, coking coal, and metal scrap.

It could increase the price competitiveness of Indian products in New Zealand markets, especially for labor-intensive sectors and MSMEs.

Sensitive Indian Sectors Protected by India

India has not included some sensitive products in its tariff concession list including dairy, livestock, agricultural products, sugar, and edible oils.

In contrast, access of New Zealand products like apples, kiwifruits, Manuka honey was regulated through tariff rate quotas, minimum import price, and seasonal conditions. It also provides for establishment of an Agriculture Productivity Partnership dealing with productivity, technology, post-harvest and income of farmers.

Investment Pledge of USD 20 Billion

New Zealand is looking forward to making USD 20 billion of investments in India. It will help various industries such as agriculture, manufacturing, infrastructure, and start-ups.

Further, the agreement includes scope for expanding the services sector and mobility of professionals.

Provisions Related to Mobility

• 5,000 visas for temporary employment entry of skilled Indians
• 1,000 working holiday visas per year for Indian youth
• Visas for post study work for STEM and doctoral scholars