India–New Zealand free trade agreement comes into force: zero duty on all Indian exports
From October 20, every Indian export enters New Zealand duty-free, while India cuts tariffs on most New Zealand goods but protects dairy and key farm products. The aim is NZ$7 billion in trade by 2030.
At a glance
- The India–New Zealand free trade agreement took effect on Tuesday, October 20, 2026, after being signed on April 27.
- New Zealand removed duties of up to 10% on 100% of Indian exports; India cut tariffs on 70% of its tariff lines, covering about 95% of current trade.
- Dairy, onions, pulses, sugar, edible oils, almonds and some metals are excluded; apples, kiwifruit and manuka honey get quotas with safeguards.
- New Zealand will facilitate $20 billion of investment into India over 15 years and offer up to 5,000 skilled-worker visas and 1,000 working-holiday visas a year.
India's free trade agreement with New Zealand came into force on Tuesday, October 20, 2026. From today, every Indian export enters New Zealand duty-free, while India opens its market to most New Zealand goods but keeps its dairy farmers and other sensitive sectors protected.
The deal at a glance
| Signed | April 27, 2026 (talks began March 2025) |
| In force | October 20, 2026 |
| New Zealand's tariffs on Indian goods | Zero on 100% of tariff lines (previously up to 10%) |
| India's concessions | 70% of tariff lines, covering about 95% of current trade |
| Excluded by India | Dairy, onions, pulses, corn, almonds, sugar, edible oils, precious metals, jewellery, copper and aluminium products |
| Special quotas | Apples, kiwifruit, manuka honey and albumins, with minimum import prices and safeguards |
| Investment | New Zealand to facilitate $20 billion into India over 15 years |
| Mobility | Up to 5,000 temporary employment visas for skilled Indians; 1,000 working-holiday visas a year |
| Trade target | NZ$7 billion (about ₹35,000 crore) in goods and services by 2030 |
Who gains in India
Commerce and Industry Minister Piyush Goyal, who announced the implementation date, said the pact would help a wide range of exporters, especially labour-intensive industries:
- textiles and apparel, leather and footwear;
- gems and jewellery, engineering goods;
- pharmaceuticals, processed food and marine products.
Indian manufacturers will also get duty-free access to some industrial inputs from New Zealand, such as wooden logs, coking coal and metal scrap. To mark the day, an Indian-made JCB machine was flagged off for export to New Zealand.
What New Zealand gets
New Zealand Trade Minister Todd McClay said 95% of New Zealand's current exports to India will benefit from tariff elimination or substantial cuts once the deal is fully phased in. Products such as apples and kiwifruit get access through quotas, and an Agricultural Productivity Partnership will help Indian growers improve orchard practices and reduce post-harvest losses.
The numbers behind the deal
Trade between the two countries is still small. It was about $1.3 billion in 2024–25 and fell 11% to $1.15 billion in 2025–26, when India exported $566.5 million and imported $589.1 million. The target of NZ$7 billion by 2030 means trade would need to grow several times over.
Commerce Secretary Rajesh Agrawal said the priority now is to turn the agreement into real gains for businesses.
Why it matters
The agreement is part of India's push to sign trade deals with developed economies — following agreements with the UAE, Australia, the EFTA group and the UK — as it tries to become a manufacturing and export hub. For New Zealand, it opens a market of 1.4 billion people.
India's decision to keep dairy out — New Zealand's biggest export — shows how firmly New Delhi protects its millions of small dairy farmers, a red line in all its trade talks. For Pakistan and Bangladesh, which compete with India in textiles and leather, duty-free Indian access to New Zealand adds competitive pressure in that market.
What happens next
Exporters can claim the new tariff rates from today with valid certificates of origin. Tariff cuts on some New Zealand products will be phased in over several years, and the two governments will review progress through a joint committee.
Questions people are asking
When did the India–New Zealand FTA come into force?
On Tuesday, October 20, 2026. It was signed on April 27, 2026, after talks that began in March 2025.
What does India get from the New Zealand FTA?
Duty-free access for all its exports to New Zealand, a New Zealand commitment to facilitate $20 billion of investment over 15 years, up to 5,000 temporary employment visas for skilled Indians and 1,000 working-holiday visas a year.
Is dairy included in the India–New Zealand trade deal?
No. India kept dairy out of the agreement, along with sensitive farm products such as onions, pulses, sugar, edible oils and almonds.
