India-New Zealand FTA Comes Into Effect, Grants Duty-Free Access To Indian Exports

New Delhi, Oct 21 (KNN) The India-New Zealand Free Trade Agreement (FTA) came into effect on Tuesday, granting 100 per cent duty-free access to Indian exports and creating opportunities for businesses across textiles, leather, engineering goods, pharmaceuticals and other sectors.

Signed on April 27, 2026, the agreement is India's seventh trade pact to become operational in the past five years and its 17th active FTA. Negotiations began in 2010, stalled in 2015 and resumed in March 2025.

The agreement covers goods, services, investment, skills and mobility, with the two countries targeting a doubling of bilateral trade by 2030.

Labour-Intensive Sectors To Benefit From Duty-Free Access

Experts said labour-intensive sectors, including textiles, apparel, leather and footwear, along with engineering goods, auto components, gems and jewellery, agriculture and processed foods, stand to benefit from improved market access, reported PTI.

Gulzar Didwania, Partner, Deloitte India, said the agreement could support higher foreign direct investment (FDI) inflows, although the scale would depend on private-sector investment decisions. New Zealand has committed USD 20 billion in FDI over 15 years.

He added that provisions covering duty-free inputs, bilateral cumulation, customs facilitation and investment promotion could strengthen supply-chain integration and improve investment conditions.

FTA To Strengthen Services And Investment Ties

Shishir Priyadarshi, President, Chintan Research Foundation, said the pact reinforces open markets and predictable trade rules amid global trade uncertainty. He noted that its coverage of services, investment, skills and mobility could create opportunities for Indian businesses and professionals.

Deep Kapuria, trade expert and Chairman, Hi-Tech Gears, said the agreement expands India's market access in the Asia-Pacific region. He highlighted opportunities in services such as AYUSH and yoga, alongside student mobility and post-study work options.

Bilateral Trade Declines 11 Per Cent In FY26

Bilateral trade between India and New Zealand declined around 11 per cent to USD 1.15 billion in FY26 from USD 1.3 billion in the previous fiscal year. India's exports stood at USD 566.51 million, while imports were USD 589.1 million, resulting in a trade deficit of USD 22.59 million.

Rani Singh, an Indian-origin New Zealander, said the agreement could strengthen bilateral ties and create opportunities in education, tourism, technology, professional services and investment, in addition to trade in goods.

(KNN Bureau)