India-New Zealand Free Trade Agreement to Take Effect from October 20, 2026, Boosting Bilateral Trade
The Free Trade Agreement (FTA) between India and New Zealand will become effective on October 20, 2026, granting zero duty on 100% of India's exports to New Zealand.
Strengthening trade and economic partnership between India and New Zealand, the Free Trade Agreement (FTA) is set to be implemented from October 20, 2026. The agreement was signed on April 27, 2026, at Bharat Mandapam in New Delhi by the Union Minister of Commerce and Industry, Piyush Goyal, and New Zealand's Minister for Trade and Investment, Todd McCleay. During a recent virtual conference, both ministers announced this date following the completion of internal processes. Notably, the New Zealand Parliament passed the relevant legislation on September 16, 2026.
Union Minister of Commerce and Industry Piyush Goyal stated that the auspicious day of Dussehra-Vijayadashami was chosen for the implementation of this agreement. He remarked that the FTA will provide new momentum to the bilateral partnership and ensure prosperity for both nations by removing barriers in trade, technology, and investment relations. New Zealand Minister Todd McCleay added that the agreement provides confidence and will create a strong foundation for culture, sports, investment, and people-to-people connectivity between the two countries.
Once the agreement takes effect, 100 percent of India's exports to New Zealand will be duty-free. This will directly benefit sectors such as textiles, apparel, leather, footwear, gems and jewelry, engineering goods, and processed food products. Indian manufacturers will also gain duty-free access to critical inputs such as coking coal, metal scrap, and wooden logs. However, to protect the interests of Indian farmers, sensitive items such as dairy, sugar, edible oils, and major agricultural products have been excluded from duty concessions.
To enhance cooperation in the agricultural sector, an 'Agricultural Productivity Partnership' will be established. Under this partnership, special action plans and centers of excellence will be created for kiwi fruit, apples, and honey. A joint agricultural productivity council will monitor these activities.
On the investment front, the agreement paves the way for New Zealand's commitment to invest 20 billion US dollars in India, which will benefit Indian manufacturing, infrastructure, agriculture, and start-ups. For the service sector, approximately 118 areas have been included, including information technology, tourism, and professional services.
Provisions have been made for 5,000 temporary employment entry visas for skilled Indians and 1,000 working-holiday visas per year for youth. Additionally, graduate students in Science, Technology, Engineering, and Mathematics (STEM) will be entitled to work for three years after their studies, while doctoral researchers will have the right to work for up to four years.
This agreement aligns with the 'India-New Zealand Strategic Partnership: Roadmap to 2030,' which aims to double bilateral trade to 7 billion New Zealand dollars (approximately ₹35,000 crore) by 2030. In the year 2025-26, merchandise trade between the two countries reached approximately 1.1 billion US dollars.
