The India-New Zealand FTA will come into effect from October 20, 2026. Under this, duties will be reduced or eliminated on approximately 95% of New Zealand goods, while Indian products will get a duty-free market in New Zealand.

India-New Zealand FTA to come into effect from October 20

The Free Trade Agreement (FTA) between India and New Zealand will come into effect on October 20, 2026, Union Commerce Minister Piyush Goyal announced. The agreement aims to increase trade between the two countries, open the New Zealand market to Indian goods, and promote investment.

Duties will be reduced or eliminated on 95% of New Zealand goods.

Under this agreement, import duties will be eliminated or significantly reduced on approximately 95% of goods coming from New Zealand to India. These include products like New Zealand's famous wines, kiwis, and apples. All goods going from India to New Zealand will receive duty-free market access, making it easier for Indian companies to sell their products in New Zealand.

Relief for Indian students and workers as well

The FTA encompasses more than just trade in goods. It will also simplify regulations for the movement of Indian students and workers to New Zealand. Furthermore, New Zealand has committed to investing $20 billion in India over the next 15 years.

Aim to double trade by 2030

India and New Zealand have set a target to double trade between the two countries by 2030. In the 12 months to June 2026, trade between the two countries was approximately $2.3 billion.

New Zealand Trade Minister Todd McLay said that at a time when uncertainty regarding trade is increasing in the world, and tariffs are rising in many countries, India and New Zealand have reached an agreement that can be beneficial for the business of both the countries.

India's big strategy amid tensions with America

This agreement between India and New Zealand comes at a time of heightened trade tensions between India and the United States. Legislation has been passed giving US President Donald Trump the power to impose additional tariffs of up to 100% on countries buying oil from Russia.

The United States is currently India's largest export market. As a result, India is constantly exploring new markets for its exports. Following trade agreements with the UK and the European Union, the FTA with New Zealand is considered an important step in this direction.

Last week, India took a strong stance on the US's new tariff regime on oil purchases from Russia, saying it could impact relations between the two countries. Overall, the India-New Zealand FTA is expected to provide Indian companies with better access to the New Zealand market, while facilitating easier entry into the Indian market for New Zealand agricultural and other products.

What will change with the agreement?

• Import duty on about 95% of goods coming to India from New Zealand will be abolished or reduced significantly.
• This includes products like wine, kiwi fruit and apples.
• On the other hand, all goods from India will get entry into New Zealand without duty.
• Rules for Indian students and workers to travel to New Zealand and work there will be eased.
• New Zealand is committed to investing $20 billion in India over the next 15 years.