India and New Zealand have finalised their Free Trade Agreement (FTA), with the pact scheduled to come into force on October 20, 2026. The agreement will provide duty-free market access in New Zealand for 100% of Indian exports, covering all tariff lines. The pact is expected to enhance the competitiveness of India’s labour-intensive sectors and support employment across textiles and apparel, leather and footwear, gems and jewellery, engineering goods and processed food. India and New Zealand also aim to double bilateral trade in goods and services to Rs. 35,000 crore (US$ 3.68 billion) by 2030. The FTA was signed on April 27, 2026, while the New Zealand Parliament approved the agreement on September 16, 2026, with the legislation receiving 93 votes in favour and 29 against.
The agreement includes a commitment from New Zealand to invest Rs. 1.89 lakh crore (US$ 20 billion) in India over 15 years, supporting long-term investment and economic cooperation. For New Zealand’s exports to India, the pact provides market access across 70.03% of tariff lines, covering 95% of bilateral trade, while India has excluded 29.97% of tariff lines covering sensitive products such as dairy, several agricultural commodities, sugar and certain metals. Duties on 30% of tariff lines covering products including wood, wool, sheep meat and raw hides will be eliminated immediately, while another 35.60% will be phased out over three to 10 years. The agreement also provides services commitments across 118 sectors, mobility opportunities for Indian students and professionals, an annual quota of 5,000 skilled Indian workers under a Temporary Employment Entry visa pathway and 1,000 Working Holiday Visas annually. Cooperation will also cover agriculture, investment, research and innovation, technology, renewable energy, digital services and infrastructure.
