India-New Zealand FTA to Take Effect on October 20, Giving Indian Exports 100% Zero-Duty Access

The India-New Zealand Free Trade Agreement takes effect on October 20, offering zero-duty access for Indian exports, attracting investment commitments and creating new opportunities for bilateral trade.

India-New Zealand FTA to Come into Force on October 20

The India-New Zealand Free Trade Agreement (FTA) will come into effect on October 20, marking a significant step towards strengthening economic cooperation, expanding market access and encouraging investment between the two countries.

Under the agreement, 100% of Indian exports will receive zero-duty access to the New Zealand market, creating opportunities for Indian businesses across multiple sectors. The pact also includes provisions for investment, skilled-worker mobility and agricultural cooperation.

Commerce Secretary Rajesh Agarwal said the agreement is the seventh trade pact to be operationalised by India over the past five years, reflecting the country's efforts to expand its international trade partnerships.

India and New Zealand concluded negotiations in December 2025 and signed the agreement in April 2026. With its implementation, both countries expect to deepen commercial relations and increase the movement of goods and services.

India and New Zealand Target Higher Bilateral Trade

The two countries aim to double bilateral trade over the next five years through improved market access and stronger commercial engagement.

India's merchandise trade with New Zealand reached $1.3 billion in the financial year 2024–25, registering a 49% increase compared with the previous year. The FTA is expected to provide additional momentum by reducing trade barriers and creating a more predictable environment for businesses.

To support these efforts, the India Trade Promotion Organisation (ITPO) will establish an office in New Zealand. The office will help promote Indian products, facilitate business connections and encourage greater participation by exporters in the New Zealand market.

The agreement also includes a commitment from New Zealand to facilitate $20 billion in investments into India over the next 15 years. The proposed investment support could strengthen economic cooperation and create opportunities across sectors, although actual investment flows will depend on future projects and business decisions.

Skilled Indian Professionals to Benefit from Visa Pathway

The agreement introduces a Temporary Employment Entry Visa pathway for eligible skilled Indian professionals seeking employment opportunities in New Zealand.

Under this arrangement, a quota of 5,000 visas has been provided, with eligible individuals permitted to stay for up to three years.

The provision is intended to improve professional mobility and support the exchange of skills between the two economies. It could create opportunities for qualified Indian workers while helping New Zealand address selected workforce requirements.

The visa pathway forms part of the broader agreement, which covers not only merchandise trade but also cooperation in investment and professional mobility.

India Protects Sensitive Agricultural and Industrial Sectors

While expanding market access, India has retained protections for several sensitive sectors. The agreement does not provide tariff concessions for products such as dairy items, onions, almonds and sugar, among other protected categories.

These exclusions are intended to safeguard domestic producers from increased import competition in areas considered economically or politically sensitive.

New Zealand has also committed to supporting Indian farmers through an agricultural productivity partnership. The initiative is expected to encourage cooperation in agricultural practices and productivity improvements.

The agreement therefore combines wider trade liberalisation with measures designed to protect domestic interests and support agricultural development.

What India Will Offer New Zealand Under the FTA

India will reduce or eliminate tariffs across 70% of its tariff lines for imports from New Zealand, covering approximately 95% of bilateral trade. However, the concessions will vary by product and may be subject to duties, minimum import prices, quotas and specified import periods.

New Zealand Apples to Enter India Under a Quota System

New Zealand apples will be permitted to enter India at an import duty of 25%, subject to prescribed quotas.

The quota will begin at 35,000 metric tonnes in the second year of implementation and increase to 45,000 metric tonnes from the sixth year.

The designated import window for apples will run from April 1 to August 31. These conditions establish limits on the volume and timing of eligible imports.

Kiwi Fruit to Receive Conditional Zero-Duty Access

Kiwi fruit priced above $1.80 per kilogram will qualify for zero-duty access under the agreement, subject to quotas.

The quota will increase from 8,000 metric tonnes in the second year to 15,000 metric tonnes from the sixth year of implementation.

Imports under the quota will be permitted between April 1 and October 15.

Albumin Imports to Follow Tariff and Quota Limits

Albumin exports from New Zealand will attract an 11% import duty under the agreement.

The quota will rise from 1,500 metric tonnes in the second year to 3,000 metric tonnes from the fifth year. Unlike apples and kiwi fruit, albumin imports will have a year-round quota window.

Manuka Honey to Have a Minimum Import Price

For New Zealand-certified Manuka honey, India has established a minimum import price of $30 per kilogram.

The quota will be limited to 40 metric tonnes in the first year before increasing to 200 metric tonnes from the second year. Imports under this arrangement will be permitted throughout the year.

These product-specific provisions demonstrate that the FTA does not provide unrestricted zero-duty access for every New Zealand product. Instead, tariff concessions are structured around individual products and their respective conditions.

India Expands Its Network of Trade Agreements

The implementation of the India-New Zealand FTA represents another step in India's efforts to diversify export destinations and strengthen international economic partnerships.

With the pact becoming operational, India will have trade agreements with all members of the Regional Comprehensive Economic Partnership (RCEP) grouping except China, according to the supplied details.

For Indian exporters, the agreement offers broader access to New Zealand's market, while New Zealand businesses will receive improved access to selected Indian sectors.

Conclusion

The India-New Zealand FTA, effective October 20, is expected to strengthen bilateral trade through zero-duty access for Indian exports, investment commitments and skilled-worker mobility. Its long-term impact will depend on implementation, business participation and the ability of both countries to meet their trade and investment objectives.