The India-New Zealand Free Trade Agreement (FTA) officially entered into force on 20 October 2026, coinciding with Vijay Dashmi. The operational rollout follows a joint virtual conference held on 19 October between Union Minister of Commerce and Industry Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay, according to an official release by the Press Information Bureau (PIB).
The agreement follows bilateral negotiations that commenced on 16 March 2025, concluded on 22 December 2025, and culminated in a formal signing on 27 April 2026. It supports the India–New Zealand Strategic Partnership: Roadmap to 2030, which targets expanding bilateral goods and services trade to NZ$7 billion (₹35,000 crore) by 2030.
Complete Tariff Elimination and $20 Billion Investment Commitment
Under the agreement, New Zealand has eliminated customs duties on 100% of tariff lines covering Indian exports, removing peak tariffs of up to 10%. The concessions cover textiles, apparel, leather, footwear, gems and jewellery, engineering goods, automobiles, auto components, chemicals, pharmaceuticals, and processed agricultural products.
Regulatory clearances for pharmaceuticals and medical devices have also been streamlined. India gains duty-free access for imports of wooden logs, coking coal, and metal waste and scrap.
To mark the implementation, Union Minister Piyush Goyal flagged off the first-ever export of an Indian-manufactured JCB machine to New Zealand. The agreement also includes New Zealand's commitment to facilitate USD 20 billion in investment into India, focusing on infrastructure, manufacturing, start-ups, and agriculture under the Make in India framework.
Mobility Quotas, Services Access, and Farm Safeguards
In services, New Zealand has granted market access across approximately 118 sectors and Most-Favoured-Nation commitments in roughly 139 sub-sectors, including dedicated access for AYUSH services such as Ayurveda and Yoga.
The mobility provisions establish an annual quota of 5,000 Temporary Employment Entry visas and 1,000 Working Holiday visas for Indian citizens. Indian students will face no numerical entry caps and will receive post-study work rights of up to three years for STEM bachelor's and master's degrees and up to four years for doctoral degrees.
To protect domestic farmers, India has excluded sensitive agricultural products from tariff reductions, including dairy products, sugar, edible oils, and major agricultural commodities.
The agreement also establishes an Agricultural Productivity Partnership, linking Tariff Rate Quotas for apples, kiwifruit, and Mānuka honey to technical cooperation and oversight by a Joint Agriculture Productivity Council. New Zealand is supporting Centres of Excellence in Nagaland, Uttarakhand, Himachal Pradesh, Uttar Pradesh, and West Bengal, alongside commitments to register Indian Geographical Indications.
Q1. When did the India-New Zealand FTA enter into force?
The agreement entered into force on 20 October 2026.
Q2. What duty concessions did New Zealand grant to Indian goods?
New Zealand eliminated customs duties on 100% of tariff lines covering Indian exports, removing peak tariffs of up to 10%.
Q3. What is New Zealand's investment commitment?
New Zealand committed to facilitate USD 20 billion in investment into India, focusing on infrastructure, manufacturing, start-ups, and agriculture.
Q4. Which Indian sectors are excluded from tariff concessions?
Dairy, sugar, edible oils, and major agricultural commodities are excluded from India's tariff concessions.
Q5. What visa provisions are available to Indian professionals and students?
The agreement provides annual quotas of 5,000 Temporary Employment Entry visas and 1,000 Working Holiday visas. Eligible STEM graduates can receive post-study work rights of up to three years, while doctoral graduates can receive up to four years.
