NEW DELHI, October 19 (ANI) — The India-New Zealand Free Trade Agreement (FTA) will come into force on Tuesday, October 20, providing duty-free access for Indian goods across the New Zealand market and opening new opportunities for exporters, according to a presentation by the Ministry of Commerce and Industry.
The agreement aims to strengthen bilateral trade and investment ties, expand services trade and diversify India’s export markets amid geopolitical uncertainty.
Labor-intensive sectors, including textiles, apparel, leather and footwear, are expected to benefit from the elimination of tariffs of up to 10% from the outset of the agreement. Engineering goods, pharmaceuticals, machinery, chemicals and agricultural products are among the other sectors expected to gain improved market access.
The agreement covers market access across 70% of tariff lines, while India has kept 30% of its tariff lines excluded. Of the tariff lines covered for New Zealand, 30% will see immediate duty elimination, while the remaining lines will be subject to phased reductions over up to 10 years, tariff cuts or tariff-rate quotas.
Under the India-New Zealand Strategic Partnership Roadmap, both countries have set a target of doubling bilateral trade in goods and services to NZD 7 billion, equivalent to approximately 350 billion rupees, by 2030.
Bilateral trade in goods and services currently stands at $2.4 billion. India’s services exports to New Zealand increased 13% from $561 million to $634 million, while Indian goods exports rose 16% over the past four years to $566.5 million in fiscal year 2025-26.
The agreement also seeks to facilitate trade through faster customs clearance, with cargo to be cleared within 48 hours and express and perishable consignments within 24 hours. It provides for digital certification and self-certification of rules of origin for status holders.
In agriculture, the agreement provides calibrated market access for apples, kiwifruit and honey, subject to safeguards that include restricted tariff-rate quotas, minimum import prices and seasonal windows. An agricultural productivity partnership is also planned to improve farm yields and connect producers with global value chains.
The agreement also provides for a $20 billion investment commitment from New Zealand and opportunities for cooperation in pharmaceuticals, medical devices and services.
The FTA is expected to strengthen economic engagement between the two countries, expand opportunities for Indian businesses and improve supply-chain integration as India seeks to diversify its export destinations and tap new markets. (ANI)
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