The India-New Zealand Free Trade Agreement (FTA) has been ratified and will come into force on October 20, 2026. The agreement aims to strengthen bilateral trade and investment while creating wider market opportunities for businesses in both countries.

Union Commerce Minister Piyush Goyal said India and New Zealand aim to double bilateral trade to ₹35,000 crore over the next four to five years. The agreement is expected to support exporters, micro, small and medium enterprises (MSMEs), farmers, handloom artisans and weavers.

Tariff Benefits for Indian Exports

Under the agreement, import duties on Indian goods entering New Zealand will be eliminated. New Zealand has also agreed to provide tariff-free or significantly reduced-tariff access for around 95% of its exports to India.

India has retained protection for several sensitive sectors. These include dairy and selected agricultural products such as onions, almonds, chickpeas, peas, artificial honey and sugar.

$20 Billion Investment Commitment

New Zealand has committed to investing $20 billion in India. The investment could support areas including agriculture, technology, engineering and manufacturing.

Goyal said New Zealand companies could use India as a manufacturing base and export products to global markets. The agreement may also encourage technology partnerships and new manufacturing investments.

Focus on Trade and Global Market Access

India and New Zealand expect the FTA to provide greater confidence to businesses and encourage new commercial partnerships. New Zealand Trade and Investment Minister Todd McClay highlighted the agreement’s importance amid rising global trade barriers.

Bilateral trade was valued at around $1.3 billion in FY2024-25. The new FTA is expected to provide a framework for expanding trade and investment between the two countries.

The agreement will enter into force on October 20, 2026, following the completion of the required domestic legal processes in both countries.