The India-New Zealand Free Trade Agreement (FTA) will take effect on October 20, coinciding with Dussehra, as announced by Union Commerce Minister Piyush Goyal. India will gain duty-free access for 100% of its exports to New Zealand, marking a significant step in bilateral economic relations. The agreement, signed on April 27 after nine months of negotiations, was ratified by both countries on September 21.
Under the FTA, all Indian exports to New Zealand will benefit from duty-free access across various tariff lines. This includes key sectors like textiles, leather, engineering goods, processed foods, automobiles, and services such as IT, education, and finance. Prior to this agreement, some Indian products faced tariffs of up to 10%, which will be eliminated once the deal is activated.
Additionally, New Zealand has pledged to facilitate $20 billion in investments into India over the next 15 years. New Zealand’s High Commissioner described the pact as a significant milestone, highlighting the mutual trust between the two nations.
Recent government data indicates a substantial increase in India-New Zealand trade, with merchandise trade rising to $1.3 billion in 2024-25, showcasing a 49% growth attributed to increased Indian exports.
