The India-New Zealand Free Trade Agreement (FTA) will come into force on October 20, coinciding with Dussehra, Union Minister of Commerce and Industry Piyush Goyal said on Monday, with India securing duty-free access for 100% of its exports to New Zealand.
Goyal made the announcement during a virtual interaction with New Zealand Trade and Investment Minister Todd McClay in New Delhi, saying he was delighted to take forward the next important milestone in the bilateral economic partnership. The agreement was signed in New Delhi on April 27 after negotiations between the two countries concluded in nine months, and both countries formally ratified the pact on September 21.
Under the agreement, 100% of Indian exports to New Zealand will receive duty-free access from the day the FTA comes into force, covering all tariff lines. That includes several labour-intensive industries where India has significant export capacity, such as textiles and apparel, leather and footwear, engineering goods, processed foods, automobiles and auto components, gems and jewellery, and other manufactured products. Before the agreement, some Indian products faced New Zealand tariffs of up to 10%, barriers that will disappear once the deal takes effect. India has also secured commitments across a wide range of high-value service sectors, including IT and IT-enabled services, professional services, education, financial services, tourism, construction and other business services.
New Zealand, meanwhile, has committed to facilitating investments of $20 billion into India over the next 15 years. New Zealand High Commissioner to India Patrick John Rata described the pact as a “huge” development for both countries, saying an FTA works well because the two countries have decided to trust each other.
According to government data, India-New Zealand merchandise trade grew from $873 million in 2023-24 to $1.3 billion in 2024-25, registering 49% growth, with India’s merchandise exports to New Zealand rising 32% to $711 million in 2024-25. The agreement follows Prime Minister Narendra Modi’s visit to New Zealand in July, the first visit by an Indian PM to the country in four decades.
