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India-New Zealand free trade agreement takes effect, eliminating tariffs on Indian exports
New Zealand has pledged $20 billion in investment over 15 years, while both countries aim to double bilateral trade to NZ$7 billion by 2030.
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The India-New Zealand free trade agreement (FTA) will come into force on Tuesday, becoming the seventh FTA to be operationalised in the past five years and eliminating tariffs on 100% of Indian exports, commerce minister Piyush Goyal said on Monday.
“We will start tomorrow on the auspicious day of Dussehra,” he said, referring to the Hindu festival that marks the culmination of Navratri.
All Indian merchandise exports to New Zealand will now be duty-free, Goyal said while addressing Indian exporters. Under the pact, New Zealand has also committed to investing $20 billion in India over the next 15 years.
New Zealand trade minister Todd McClay, who joined the meeting virtually, said 57% of New Zealand exports to India will be tariff-free from day one.
At present, New Zealand imposes peak tariffs of up to 10% on key Indian goods such as ceramics, carpets, automobiles and auto components.
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“This is the seventh FTA operationalised in the last five years,” commerce secretary Rajesh Agrawal said.
Goyal said India and New Zealand aim to double bilateral trade to NZ$7 billion (about ₹35,000 crore) by 2030 through the agreement.
Economic Cooperation and Opportunities for Businesses
The FTA provides a comprehensive framework for bilateral economic cooperation, covering market access, agricultural productivity, investment, talent mobility, sports, tourism and people-to-people ties, a commerce ministry official said.
The agreement is also expected to boost India’s services exports by opening opportunities for skilled Indian professionals in sectors such as information technology, engineering, healthcare, education and construction. It also provides for cooperation involving AYUSH systems of medicine, yoga instructors, chefs and music teachers, the official said.
The deal is mutually beneficial, the official said, adding that New Zealand investors would gain access to India’s manufacturing ecosystem and large market. India is setting up dedicated investment facilitation desks to assist investors from New Zealand.
McClay said the FTA would “level the playing field and unlock access for Kiwi businesses in one of the fastest growing markets” in the world.
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Market Access and Safeguards for Key Sectors
New Zealand exporters will benefit from preferential quota access to the Indian market for products including apples, kiwifruit and albumins. More than 95% of New Zealand’s forestry and wood exports will also benefit from improved access, alongside exports such as sheep meat, wool and coal.
Wine tariffs will fall from 150% to either 25% or 50% over 10 years, depending on the product’s value, the New Zealand government said in a statement.
Goyal said India had fully protected the interests of domestic farmers and the dairy sector while selectively leveraging New Zealand’s strengths in efficient farming practices.
India has excluded onions, chickpeas, peas, corn, almonds, artificial honey and sugar from the agreement.
Citing kiwi fruit cultivation and Manuka honey, Goyal said Indian farmers could benefit from technology transfer, improved pollination methods and modern beekeeping systems.
McClay described the FTA as a “high-quality agreement” and said the deal would give businesses in both countries confidence amid global economic uncertainty.
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Signing and Ratification of the Agreement
India and New Zealand signed the FTA on April 27, and both sides completed ratification formalities on September 21. Negotiations were launched on March 16, 2025, and concluded on December 22, 2025, after nine months.
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