India-New Zealand FTA to enter into force in Oct.

In a defining step forward for trade and economic partnership, the India-New Zealand Free Trade Agreement, which was inked in April this year, will enter into force on October 20, 2026. 

The two countries have the aspirational goal of doubling bilateral two-way trade in goods and services to NZ$7 billion (approximately Rs 35,000 crore) by 2030.

From the entry into force, every single tariff line covering 100% of India’s exports to New Zealand becomes duty-free, offering Indian industry a level playing field that puts it on par with New Zealand’s other trading partners. Sectors that power livelihoods across the country - textiles and apparel, leather and footwear, gems and jewellery, engineering goods and processed foods - stand to gain immediately as New Zealand’s peak tariffs of up to 10% are eliminated. Indian manufacturers will also benefit from tariff-free access to critical inputs such as wooden logs, coking coal and metal scrap, sharpening their competitive edge in global markets.

At the same time, the government has safeguarded the interests of Indian farmers by keeping sensitive products such as dairy, animal meat (except sheep), key agricultural commodities, sugar and edible oils excluded from tariff concessions. A calibrated market access has been structured for New Zealand’s apples, kiwifruit and Manuka honey through Tariff Rate Quotas with Minimum Import Price and seasonal import windows, alongside safeguards to protect domestic farmers. 

Besides, India’s pharmaceutical and medical device exporters gain a long-awaited edge as New Zealand begins accepting inspection approvals from globally trusted regulators such as the US FDA, EMA, UK MHRA and Health Canada, cutting long waiting time and speeding up market entry.

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