India’s Free Trade Agreement (FTA) with New Zealand came into force on October 20, 2026, marking a major step towards strengthening economic ties between the two countries. The agreement provides duty-free access to the New Zealand market for 100% of Indian merchandise exports, creating fresh opportunities for businesses, manufacturers and exporters.
The pact is also expected to support investment, professional mobility and cooperation across several sectors, including agriculture, education and technology. Both countries aim to double bilateral trade in goods and services to NZ$7 billion by 2030.
Indian Exporters to Benefit From Zero Tariffs
The agreement removes New Zealand’s customs duties on Indian merchandise exports, including products that previously faced tariffs of up to 10%.
Key sectors expected to benefit include textiles, apparel, leather goods, footwear, gems and jewellery, engineering products, pharmaceuticals and processed foods. Small businesses and manufacturers could gain a competitive advantage as their products become more affordable in the New Zealand market.
The deal is expected to help Indian exporters expand their international presence and explore new commercial opportunities.
New Zealand Commits to Investment in India
New Zealand has committed to facilitating investments worth US$20 billion in India over the next 15 years under the agreement.
The proposed investment is expected to support sectors such as manufacturing, infrastructure, agriculture and start-ups. Dedicated provisions will also help strengthen business partnerships and improve investment opportunities between the two countries.
Agriculture and Sensitive Sectors Protected
While the agreement expands trade opportunities, India has retained protections for several sensitive agricultural products and the dairy sector.
Products such as sugar, edible oils and certain agricultural commodities have been excluded from tariff concessions. Imports of selected New Zealand products, including apples, kiwifruit and Manuka honey, will receive preferential access under specified quotas and safeguards.
The agreement also provides for agricultural cooperation, with an emphasis on improving productivity, orchard management, food safety and sustainable beekeeping.
New Opportunities for Indian Professionals and Students
The FTA extends beyond merchandise trade by opening additional opportunities for Indian service providers, skilled workers and students.
It provides for up to 5,000 temporary employment visa holders in New Zealand at any one time under designated pathways for eligible Indian professionals. A working holiday scheme for Indian nationals aged 18 to 30 is also planned, with an annual limit of 1,000 places.
The agreement includes provisions concerning student mobility and post-study work opportunities for eligible graduates. However, applicants must meet the applicable visa, employment and qualification requirements. <escape>[2]</escape>
Aiming to Strengthen Bilateral Trade
The agreement is part of a broader effort by India and New Zealand to deepen their strategic and economic partnership. By reducing trade barriers and improving access to each other’s markets, both countries hope to encourage business expansion and create employment opportunities.
The actual benefits will depend on how effectively businesses use the new provisions and how trade and investment flows develop over the coming years.
With the FTA now in force, Indian exporters have a new route to expand into the New Zealand market, while both countries look to strengthen long-term economic cooperation.
