The India-New Zealand Free Trade Agreement (FTA) came into effect on October 20. Under this agreement, Indian exporters will gain duty-free access to the New Zealand market across all tariff categories, which will open up new opportunities for trade and investment. Union Commerce Minister Piyush Goyal and New Zealand’s Minister for Trade, Todd McClay, announced the agreement’s implementation during a virtual conference held on Vijayadashami.
The objective of this agreement is to strengthen bilateral trade, promote investment and expand cooperation in the sectors of manufacturing, agriculture, services and education. Both countries have set an ambitious target to double their bilateral trade in goods and services to 7 billion New Zealand dollars (approximately 35,000 crore rupees) by 2030.
FTA to Boost Textiles, Engineering and Pharmaceutical Exports
New Zealand’s decision to scrap import duties on Indian products is expected to give a boost to several export-driven industries. Textiles, garments, leather goods, footwear, jewellery, engineering products, automobiles, chemicals, medicines and processed food are among the sectors likely to gain from the move. The removal of duties on industrial inputs, including timber, coking coal and metal scrap, could also help Indian manufacturers reduce costs and strengthen their supply networks.
The trade pact is also expected to widen overseas market access for small businesses, women entrepreneurs, artisans and start-ups. By easing tariff barriers, the agreement could help these enterprises reach more international buyers. Pharmaceutical and medical device companies are also likely to benefit from simpler regulatory procedures, which aim to make cross-border trade more efficient.
FTA Aims to Improve Farm Productivity and Protect Indian Farmers
An Agricultural Productivity Partnership has been established under the FTA, aimed at enhancing agricultural productivity through technology transfer, training, and improved farming practices. It includes specific action plans for apples, kiwis, and honey. The objective of this collaboration is to improve horticultural management, reduce post-harvest losses and strengthen farmers’ incomes.
Centres of Excellence focused on kiwifruit, apples and honey are planned across states such as Nagaland, Uttarakhand, Himachal Pradesh, Uttar Pradesh and West Bengal. The agreement also links import quotas for apples, kiwifruit and Mānuka honey to the implementation of agricultural action plans, with progress monitored by a Joint Agriculture Productivity Council.
To protect domestic producers, sensitive products—such as dairy items, sugar, edible oils and key agricultural commodities—have been excluded from tariff concessions. Provisions regarding rules of origin, bilateral safeguard measures, and anti-fraud mechanisms have also been included to prevent the misuse of preferential trade benefits.
New Zealand Pledges $20 Billion Investment in India
New Zealand has pledged to facilitate USD 20 billion in investments in India, targeting sectors such as agriculture, manufacturing, infrastructure and start-ups. The initiative aims to encourage innovation, promote entrepreneurship and generate employment.
Commerce Minister Piyush Goyal said the trade pact would open new avenues for Indian exporters, farmers, artisans, MSMEs and women entrepreneurs. New Zealand’s Trade Minister Todd McClay called the agreement a major step in bilateral ties, noting the opportunities India’s vast consumer market offers to New Zealand businesses.
India Flags Off First JCB Machine Export to New Zealand
As part of the implementation-day initiatives, Goyal flagged off the first-ever export of a JCB machine from India to New Zealand. Further export flag-offs were planned across agriculture, engineering, gems and jewellery, sporting goods, footwear and leather.
Negotiations for the agreement began on March 16, 2025, and concluded on December 22, 2025. The pact was signed on April 27, 2026, following nine months of negotiations.
The FTA forms part of the broader India–New Zealand Strategic Partnership Roadmap to 2030, which seeks to expand economic cooperation and create new opportunities for businesses, workers and communities in both countries.
FTA Opens New Work and Study Opportunities for Indians
Under this agreement, a quota has been set for eligible Indians, comprising 5,000 Temporary Employment Entry visas and 1,000 Working Holiday visas annually. It also includes extensive post-study work opportunities for Indian graduates; under this provision, eligible students who have earned undergraduate or postgraduate degrees in STEM (Science, Technology, Engineering and Mathematics) fields may be granted the opportunity to work for up to three years, while those who have completed a doctorate (PhD) may be eligible to work for up to four years.
New Zealand has provided market access in approximately 118 service sectors, while also extending Most-Favoured-Nation (MFN) commitments for about 139 sub-sectors. For the first time, the country has also granted specific access for health and traditional medicine services, including Ayurveda, Yoga, and other AYUSH systems.
(PIB)
