The India-New Zealand Free Trade Agreement (FTA) will come into force on October 20, coinciding with Dussehra, commerce and industry minister Piyush Goyal said on Monday, with India securing duty-free access for 100 per cent 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.The agreement was signed in the capital on April 27 after negotiations between the two countries concluded in nine months.“I’m delighted that we are taking forward the next important milestone in our bilateral economic partnership: the entry into force of the India-New Zealand Free Trade Agreement, which will come into force on the auspicious occasion of Dussehra on 20th October 2026,” Goyal said.
India gets duty-free access for all exports
Under the agreement, 100 per cent of Indian exports to New Zealand will receive duty-free access from the day the FTA comes into force.New Zealand, meanwhile, will eliminate or significantly reduce tariffs on about 95 per cent of its exports to India, including wine, kiwi fruit and apples, according to Reuters.The agreement also includes provisions to ease mobility rules for students and workers. Wellington has committed to investing $20 billion in 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.“It is huge for both countries. I think an FTA works well because the two countries have decided to trust each other, and that is what has happened with New Zealand and India. We put trust in the vision of our two countries coming closer together over the next period,” Rata told news agency ANI.
Bilateral trade rises 49%
Government data showed that India-New Zealand merchandise trade increased from $873 million in 2023-24 to $1.3 billion in 2024-25, registering 49 per cent growth.India’s merchandise exports to New Zealand rose 32 per cent to $711 million in 2024-25. India’s services exports to New Zealand also increased 13 per cent in 2024 to $634 million, with travel, IT and business services among the major sectors.India recorded higher exports than imports from New Zealand in 2024-25, maintaining a positive trade balance.Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon have set an aspirational goal of doubling bilateral trade in goods and services to almost Rs 35,000 crore over the next four or five years, Goyal said.The two leaders have committed to doubling bilateral trade by 2030.Goyal said political momentum for the economic relationship had also strengthened following visits by Luxon to India and PM Modi to New Zealand in July 2026.PM Modi’s visit was the first by an Indian prime minister to New Zealand in four decades.
Ministers hail agreement amid global trade uncertainty
McClay welcomed the agreement coming into force and said both countries could be proud of the deal.“I thank you for your significant commitment, contribution and hard work over the last 2 years. I think both New Zealand and India can be proud of the very high quality agreement that will deliver significant benefits for the citizens of our two countries,” McClay said.He said the ratification of the FTA represented a strengthening of the relationship between the two countries.“At a time when there is uncertainty around the world in trade, we see tariff rates escalating, we see barriers being put up, India and New Zealand show that we can agree to terms that are beneficial for trade and businesses,” McClay said, according to Reuters.McClay said the agreement marked the beginning of a new phase in bilateral relations, covering people-to-people ties, culture, sport, business and investment.The FTA comes into force as India faces changes in global trade, including new US measures targeting countries that purchase Russian oil.India has accelerated efforts to diversify export markets through trade agreements with major economies, including Britain and the European Union.“The entry into force of the India-New Zealand Free Trade Agreement will translate this code into concrete economic outcomes,” Goyal said.