From Tuesday, October 20, every product India sells to New Zealand will enter that country without customs duty. The India-New Zealand Free Trade Agreement (FTA), signed in New Delhi in April, comes into force on Vijay Dashami, after both governments completed ratification last month. Alongside zero-duty access for Indian goods, the deal opens new work and holiday visa routes for Indians and sets a goal of USD 20 billion in New Zealand investment into India, while keeping Indian dairy farmers shielded from imports.
How the deal came together
Negotiations concluded in December 2025, and the agreement was signed on April 27, 2026, at Bharat Mandapam in New Delhi by Commerce and Industry Minister Piyush Goyal and New Zealand's Trade and Investment Minister Todd McClay. New Zealand's Parliament passed the implementing law in September, and the two sides exchanged ratification documents on September 21. Goyal chose Dussehra for the start date.
The pact builds on a closer political relationship. During Prime Minister Narendra Modi's visit to New Zealand in July, the two countries upgraded ties to a Strategic Partnership and adopted a Roadmap to 2030 that aims to double two-way trade in goods and services.
What Indian exporters get
New Zealand will remove tariffs on all tariff lines covering Indian exports from day one. Indian goods had faced duties of up to 10% in some categories, and the biggest gainers are expected to be:
- Textiles, apparel and leather goods, including footwear
- Engineering goods
- Gems and jewellery
- Processed foods
- Pharmaceuticals and medical devices
For medicines and medical devices, New Zealand has agreed to accept inspection approvals from regulators such as the US FDA, the European Medicines Agency, the UK's MHRA and Health Canada, which should shorten approval times for Indian exporters. Indian manufacturers also gain duty-free access to raw materials such as wooden logs, coking coal and metal scrap.
What India protected
India has kept dairy products such as milk, cheese, yoghurt and whey out of its tariff concessions, along with animal meat other than sheep meat, sugar, edible oils and some key farm commodities. New Zealand apples, kiwifruit and Manuka honey get only limited entry through tariff-rate quotas with minimum import prices and seasonal windows, plus safeguards for Indian growers. The two sides will also set up an Agriculture Productivity Partnership with centres of excellence for orchards, post-harvest handling and beekeeping.
Key facts at a glance
| Detail | Information |
|---|---|
| Signed | April 27, 2026, Bharat Mandapam, New Delhi |
| Comes into force | October 20, 2026 |
| Indian exports to NZ | 100% of tariff lines duty-free from day one |
| Kept out by India | Dairy, most meat, sugar, edible oils, key farm items |
| Investment goal | USD 20 billion from New Zealand over 15 years |
| Work visas | Up to 5,000 Temporary Employment Entry visas for skilled Indians |
| Working holiday visas | Up to 1,000 a year for young Indians |
| Services access | About 118 sectors, including IT and professional services |
Visas, students and services
The agreement creates a quota of up to 5,000 Temporary Employment Entry visas for skilled Indian professionals; New Zealand's government says this works out to about 1,667 new three-year visas a year, covering roles from IT and engineering to chefs, yoga instructors, music teachers and Ayurveda practitioners. Up to 1,000 young Indians a year can use a new Working Holiday scheme. Indian students get commitments on work rights, including post-study work of up to three years for STEM graduates and up to four years for doctoral scholars.
On services, Indian firms get access in about 118 sectors such as IT, professional services, construction and tourism.
What it means for India
New Zealand is a small market, and bilateral merchandise trade was only about USD 1.1 billion in 2025-26. But the deal matters for three reasons. It gives labour-intensive sectors like textiles and leather a tariff edge over rivals, it offers students and young professionals clearer pathways, and it shows India can sign a trade deal with a major farm exporter without opening up dairy, which has been a red line in talks with other partners.
Goyal has said the FTA will give fresh momentum to the partnership, while McClay has called it one of the highest-quality agreements New Zealand has concluded. The deal has critics in New Zealand too: NZ First leader Winston Peters, part of the ruling coalition, has opposed it over immigration and farm provisions.
What happens next
Exporters will need certificates of origin under the FTA to claim zero-duty treatment once it takes effect on October 20. India is also expected to set up a New Zealand Investment Desk to help investors, and a joint council will monitor agricultural market access. The deal arrives as India finalises the first tranche of a trade agreement with the United States and pushes talks with Canada, adding to a busy year for Indian trade policy.
Comments (0)