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India-New Zealand FTA to Take Effect from October 20, 2026

  • 22 Sep 2026

On September 21, 2026, India and New Zealand announced that the Free Trade Agreement (FTA) between the two nations will come into force on October 20, 2026. Both sides have completed the necessary domestic procedures. The New Zealand government has also officially confirmed this implementation date.

Key Facts

  • Signing of Agreement: The India-New Zealand FTA was signed on April 27, 2026, in New Delhi by Union Minister of Commerce and Industry Piyush Goyal and New Zealand's Minister for Trade and Investment Todd McClay.
  • New Zealand's Approval: The New Zealand Parliament passed the legislation to implement the FTA on September 16, 2026, by a vote of 93-29.
  • Benefits for Indian Exports: Upon implementation, New Zealand will offer duty-free market access to Indian exports across 100% of its tariff lines. Sectors likely to benefit include textiles, leather, engineering products, and processed agricultural goods.
  • India's Tariff Offer: India has offered concessions on approximately 70.03% of tariff lines for New Zealand, covering about 95% of bilateral trade value; the remaining ~29.97% of tariff lines have been placed on the exclusion list.
  • Protection for Sensitive Sectors: India has excluded sensitive items such as dairy, several major agricultural and animal products, sugar, and certain fats and oils from tariff concessions. Tariff-Rate Quotas (TRQ) apply to items like apples, kiwis, and honey.
  • Agricultural Cooperation: The agreement provides for agricultural productivity action plans, centers of excellence, improved planting materials, research, and farmer capacity building for kiwis, apples, and honey.
  • Investment Commitment: New Zealand has committed to facilitating US $20 billion in investment into India over the next 15 years, creating opportunities in agriculture, manufacturing, infrastructure, and startups.
  • Services Sector: The agreement expands access for Indian service providers in the New Zealand market, including IT/ITeS, professional services, education, and business services.