Why in News?
The India–New Zealand Free Trade Agreement (FTA) will come into force on 20 October 2026 after both countries completed their domestic processes. The agreement was signed in New Delhi on 27 April 2026 by India’s Commerce and Industry Minister Piyush Goyal and New Zealand’s Trade and Investment Minister Todd McClay. New Zealand’s Parliament passed the implementing legislation on 16 September, followed by formal ratification on 21 September 2026.
About India–New Zealand FTA
The agreement provides duty-free access from the first day for 100% of India’s exports to New Zealand. Indian sectors such as textiles and apparel, leather and footwear, gems and jewellery, engineering goods and processed foods are expected to benefit from the elimination of New Zealand tariffs, which can be as high as 10%.
The agreement also provides tariff-free access to selected critical inputs, including wooden logs, coking coal and metal scrap. However, several sensitive Indian agricultural products, including dairy, most animal meat except sheep meat, key agricultural commodities, sugar and edible oils, have been kept outside tariff concessions.
For products such as apples, kiwifruit and Manuka honey, the agreement provides calibrated market access through measures such as tariff-rate quotas, minimum import price provisions and seasonal import windows.
New Zealand has also committed to facilitate US$20 billion in investment into India, with potential investments in sectors including agriculture, manufacturing, infrastructure and startups.
Source: PIB
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