India-New Zealand FTA to Enter into Force on October 20 with Duty-Free Access for Indian Exports

New Delhi, Sep 22 (KNN) The India-New Zealand Free Trade Agreement (FTA) will enter into force on October 20, 2026, providing duty-free access for 100 per cent of India’s exports to New Zealand from the first day of implementation.

The agreement was signed on April 27, 2026, by Union Commerce and Industry Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay. The date was announced after both countries completed their internal processes, with the New Zealand Parliament passing the required legislation on September 16.

New Zealand will eliminate tariffs on Indian textiles and apparel, leather and footwear, gems and jewellery, engineering goods and processed foods, where tariffs of up to 10 per cent currently apply. Indian manufacturers will also receive duty-free access to inputs including wooden logs, coking coal and metal scrap.

Sensitive Indian agricultural products, including dairy, most animal meat, key agricultural commodities, sugar and edible oils, have been excluded from tariff concessions. 

Market access for New Zealand apples, kiwifruit and Manuka honey will be provided through tariff-rate quotas, minimum import prices and seasonal conditions.

The agreement includes a New Zealand commitment to facilitate USD 20 billion in investment into India. It also provides market access for Indian services across around 118 sectors, including IT, professional services, construction, tourism and audio-visual services.

For Indian professionals and students, the FTA provides 5,000 Temporary Employment Entry visas for skilled workers and 1,000 Working Holiday visas annually for young Indians. 

It also provides uncapped student mobility, with post-study work rights of up to three years for STEM graduates and four years for doctoral scholars.

The agreement also provides for acceptance of inspection approvals from regulators including the US FDA, EMA, UK MHRA and Health Canada for Indian pharmaceutical and medical device exporters. Bilateral merchandise trade between India and New Zealand stood at around USD 1.1 billion in 2025-26.

(KNN Bureau)