The India-New Zealand Free Trade Agreement (FTA) will come into force on October 20 after both countries completed the domestic procedures required to ratify the pact, paving the way for a new trade and investment framework between the two countries.
The latest step follows New Zealand Parliament’s approval of the legislation on September 16, with lawmakers voting 93-29 in favour of the agreement.
Under the FTA, 100 per cent of Indian exports will receive duty-free access to the New Zealand market once the agreement takes effect. The move is expected to benefit labour-intensive and manufacturing sectors including textiles, apparel, leather, footwear, engineering goods, gems and jewellery and processed foods.
What does the India-New Zealand FTA mean for Indian exporters?
The agreement eliminates duties on all Indian exports to New Zealand, giving Indian products greater access to the market.
The sectors expected to benefit include textiles and apparel, leather and footwear, engineering goods, gems and jewellery and processed foods. India will also receive duty-free access for several manufacturing inputs, including wooden logs, coking coal and metal waste and scrap.
For New Zealand, India has offered market access across around 70 per cent of its tariff lines, covering about 95 per cent of New Zealand’s bilateral exports by value. Some tariffs will be eliminated immediately, while others will be phased out over time.
Kiwi, apples, meat and forestry products
The agreement provides improved access for several New Zealand products in the Indian market.
Sheep meat and wool will receive tariff-free access, while forestry products will also benefit from significant tariff reductions. New Zealand’s Ministry of Foreign Affairs and Trade said more than 95 per cent of its forestry exports to India will be able to enter tariff-free immediately once the agreement comes into force.
The FTA also provides quota-based access for kiwifruit and apples, with the permitted volumes increasing over time. These provisions are designed to expand market access while retaining safeguards for Indian producers.
Dairy sector remains protected
Dairy remains one of the key areas where India has retained protection.
The agreement excludes major sensitive dairy products such as milk, cream, cheese, yoghurt, whey and caseins from the market-access commitments. Several agricultural products, including onions and sugar, have also been kept outside the market-opening provisions.
This allows India to expand access for New Zealand goods while retaining tariff protection for sensitive domestic sectors.
$20 billion investment commitment
The FTA also includes a commitment aimed at encouraging $20 billion of private-sector investment from New Zealand into India over 15 years.
The investment commitment is intended to support areas including agriculture, manufacturing, infrastructure, startups and emerging technologies. New Zealand will also promote investment into India, while India will establish a dedicated New Zealand Investment Desk to facilitate investors.
Better visa access for Indian professionals
The agreement also covers services and movement of professionals.
A dedicated quota of 5,000 Temporary Employment Entry visas has been created for Indian professionals in specified occupations. The pact also provides post-study work pathways for eligible students, including STEM graduates and doctoral scholars.
What happens next?
India and New Zealand signed the FTA in New Delhi on April 27, 2026, after negotiations were concluded in December 2025. New Zealand’s parliamentary approval on September 16 removed a key domestic hurdle to implementation.
With the ratification procedures now completed, the agreement is scheduled to take effect on October 20.
The two countries are looking to use the pact to expand bilateral trade, investment and services links, while providing greater market access for exporters and creating new opportunities for businesses and professionals in both markets.