India-New Zealand FTA Comes Into Force, Makes All Indian Merchandise Exports Duty-Free

The India-New Zealand free trade agreement (FTA) will come into force on Tuesday, eliminating tariffs on 100% of Indian merchandise exports to New Zealand, Commerce and Industry Minister Piyush Goyal said on Monday. The agreement is the seventh free trade pact to be operationalised by India in the past five years.

The two countries aim to double bilateral trade to NZ$7 billion (around ₹35,000 crore) by 2030 under the agreement, Goyal said while addressing Indian exporters.

“We will start tomorrow on the auspicious day of Dussehra,” he said, referring to the Hindu festival marking the culmination of Navratri.

New Zealand has also committed to investing $20 billion in India over the next 15 years. New Zealand Trade Minister Todd McClay, who joined the meeting virtually, said 57% of New Zealand’s exports to India would become tariff-free from the first day of implementation.

The agreement is expected to expand market access for businesses in both countries, strengthen investment ties and create opportunities for Indian service providers and skilled professionals.

What Does The India-New Zealand FTA Offer?

The agreement provides a framework for cooperation across trade, investment, agricultural productivity, talent mobility, tourism, sports and people-to-people exchanges, according to a Commerce Ministry official.

All Indian merchandise exports to New Zealand will receive duty-free access. New Zealand currently imposes peak tariffs of up to 10% on certain Indian products, including ceramics, carpets, automobiles and auto components.

The agreement is also expected to benefit Indian services exports by creating opportunities for professionals in information technology, engineering, healthcare, education and construction. Cooperation will extend to areas such as AYUSH systems of medicine, yoga instruction, culinary skills and music education.

New Zealand businesses will gain preferential access to the Indian market for products including apples, kiwifruit and albumins, subject to specified quotas. More than 95% of New Zealand’s forestry and wood exports will also benefit from improved access, alongside products such as sheep meat, wool and coal.

Tariffs on New Zealand wine will be reduced from 150% to either 25% or 50% over 10 years, depending on the product’s value, according to the New Zealand government.

McClay said the agreement would “level the playing field and unlock access for Kiwi businesses in one of the fastest growing markets” in the world.

India is also establishing dedicated investment facilitation desks to help New Zealand investors navigate opportunities in the country’s manufacturing sector and wider economy.

Farmers, Dairy Sector Excluded From Tariff Concessions

Goyal said India had protected the interests of domestic farmers and the dairy sector while selectively drawing on New Zealand’s expertise in agricultural practices.

India has excluded several sensitive products from the agreement, including onions, chickpeas, peas, corn, almonds, artificial honey and sugar.

Goyal said Indian farmers could benefit from technology transfer and improved agricultural practices, citing opportunities linked to kiwifruit cultivation, pollination methods and modern beekeeping systems used in New Zealand.

The investment commitment and provisions on market access are intended to encourage greater economic cooperation, with both governments presenting the agreement as an opportunity to expand trade amid global economic uncertainty.

Commerce Secretary Rajesh Agrawal described it as the seventh FTA operationalised by India in five years.