India-New Zealand FTA to take effect on October 20; Indian exports to get duty-free access

India-New Zealand free trade agreement to benefit textiles, apparel, leather and pharmaceuticals, with both countries targeting NZD 7 billion in bilateral trade by 2030.

The India-New Zealand Free Trade Agreement (FTA) will come into force on October 20, granting Indian exporters duty-free access to a significant portion of the New Zealand market and opening up fresh opportunities for trade and investment.

According to the Ministry of Commerce and Industry, the agreement aims to strengthen bilateral economic ties, expand services trade and help India diversify its export markets amid geopolitical uncertainty.

Labour-intensive sectors, including textiles, apparel, leather and footwear, are expected to benefit from the elimination of tariffs of up to 10 per cent from the outset of the agreement. Engineering goods, pharmaceuticals, machinery, chemicals and agricultural products are also expected to gain from improved market access.

The agreement covers 70 per cent of tariff lines, while India has excluded 30 per cent of its tariff lines from the deal. Of the tariff lines covered for New Zealand, 30 per cent will see immediate duty elimination, while the remaining lines will undergo phased reductions over up to 10 years or be subject to tariff cuts and tariff-rate quotas.

India-New Zealand trade target set at NZD 7 billion

Under the India-New Zealand Strategic Partnership Roadmap, the two countries aim to double bilateral trade in goods and services to NZD 7 billion, equivalent to around Rs 35,000 crore, by 2030.

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Bilateral trade in goods and services currently stands at $2.4 billion. India’s services exports to New Zealand increased 13 per cent from $561 million to $634 million, while Indian goods exports rose 16 per cent over the past four years to $566.5 million in 2025-26.

The FTA also seeks to streamline customs procedures, with cargo clearance targeted within 48 hours and express and perishable consignments within 24 hours. It provides for digital certification and self-certification of rules of origin for eligible status holders.

Agriculture and investment opportunities

The agreement provides calibrated market access for New Zealand apples, kiwifruit and honey, subject to safeguards such as restricted tariff-rate quotas, minimum import prices and seasonal windows.

Both countries also plan to establish an agriculture productivity partnership to improve farm yields and connect producers with global value chains.

The agreement includes a $20 billion investment commitment from New Zealand and identifies opportunities for cooperation in pharmaceuticals, medical devices and services.

The FTA is expected to strengthen economic engagement, improve supply-chain integration and create new opportunities for Indian businesses seeking to expand their presence in international markets.