India-New Zealand FTA Takes Effect Today, Opens Duty-Free Access for Indian Exports

The India-New Zealand Free Trade Agreement (FTA) will come into force today, opening new opportunities for Indian exporters through duty-free access to the New Zealand market. The agreement aims to strengthen bilateral trade and investment, expand services trade and diversify India’s export destinations amid global geopolitical uncertainty.

Labour-intensive sectors such as textiles, apparel, leather and footwear are expected to benefit from the elimination of tariffs of up to 10 per cent. Engineering goods, pharmaceuticals, machinery, chemicals and agricultural products are also likely to gain improved market access.

The agreement covers 70 per cent of tariff lines, while India has excluded 30 per cent of its tariff lines from the arrangement. For products covered under the agreement, 30 per cent of tariff lines will receive immediate duty elimination, while others will see phased reductions over periods of up to 10 years, tariff cuts or tariff-rate quotas.

Under the Strategic Partnership Roadmap, both countries aim to double bilateral trade in goods and services to NZD 7 billion, equivalent to around Rs 35,000 crore, by 2030. Current bilateral trade stands at USD 2.4 billion. India’s services exports to New Zealand rose 13 per cent, from USD 561 million to USD 634 million, while Indian goods exports increased 16 per cent over four years to USD 566.5 million in 2025-26.

The FTA also seeks to streamline trade procedures, targeting customs clearance within 48 hours for regular cargo and 24 hours for express and perishable consignments. Digital certification and self-certification of rules of origin will also facilitate trade for eligible status holders.

In agriculture, calibrated market access will be provided for apples, kiwifruit and honey, subject to safeguards such as restricted quotas, minimum import prices and seasonal windows. An agricultural productivity partnership is planned to improve farm yields and connect producers with global value chains.

The agreement also includes a USD 20 billion investment commitment from New Zealand and opportunities for cooperation in pharmaceuticals, medical devices and services. The pact is expected to strengthen economic ties, expand business opportunities and improve supply-chain integration.