New Delhi, Sep 22: Indian exporters and businesses are set to get wider access to the New Zealand market as the India-New Zealand Free Trade Agreement (FTA) comes into force on October 20, 2026.
The agreement, signed in April and subsequently ratified by both countries, will provide duty-free access for 100 per cent of India’s exports to New Zealand from the first day of implementation. The pact also includes a commitment by New Zealand to facilitate $20 billion of investment in India over the next 15 years.
For Indian businesses, the agreement is expected to create fresh opportunities across sectors such as textiles and apparel, leather and footwear, engineering goods, pharmaceuticals, automobiles, auto components, agriculture and processed food.
The removal of tariffs is particularly relevant for exporters competing with suppliers from countries that already have trade agreements with New Zealand. Zero-duty access could help Indian products become more competitive and encourage more businesses, including MSMEs, to explore the market.
$20 billion investment pathway
Investment is another important part of the agreement. New Zealand has committed to facilitating up to $20 billion in investment into India over 15 years, with the potential to bring additional capital and technology into areas including manufacturing, agriculture, infrastructure and startups.
The investment component could also create opportunities for New Zealand companies to establish or expand operations in India, while Indian businesses can benefit from stronger commercial and supply-chain connections with New Zealand.
Services and mobility get a boost
The agreement extends beyond merchandise trade. It creates new opportunities for Indian services companies and professionals across areas including IT, professional services, construction, tourism and other sectors.
The pact also provides mobility pathways, including 5,000 Temporary Employment Entry visas for skilled Indian workers and 1,000 Working Holiday visas annually for young Indians. It also provides expanded opportunities for international students, including post-study work rights for eligible graduates.
Indian pharmaceutical and medical-device exporters are also expected to benefit from provisions aimed at making market access more efficient, including recognition of inspections by regulators such as the US FDA, European Medicines Agency, UK MHRA and Health Canada.
Sensitive sectors remain protected
While the agreement expands market access, India has kept several sensitive agricultural and other sectors outside tariff concessions. These include dairy, onions, chickpeas, peas, corn, almonds and sugar, among others.
The pact also includes an agricultural productivity partnership, bringing together New Zealand’s technology and expertise with India’s large domestic market and production scale.
Focus shifts to implementation
With the agreement set to take effect in October, the focus will now shift from negotiations to implementation. Exporters will need to understand rules of origin, documentation and customs procedures to make effective use of the new tariff benefits.
India and New Zealand have also set an objective of doubling bilateral trade in goods and services to NZ$7 billion, or around Rs 35,000 crore, by 2030.
The FTA therefore provides a broader framework for strengthening trade, investment, services and people-to-people links between the two countries, while giving Indian businesses a new avenue to expand their international presence.
