New Zealand to make Indian exports duty-free next month
What's the story
The India-New Zealand Free Trade Agreement (FTA) will come into effect from next month. The deal was signed on April 27 at Bharat Mandapam, New Delhi, with the aim of boosting bilateral trade in goods and services and promoting investments. Commerce and Industry Minister Piyush Goyal and New Zealand's Trade and Investment Minister Todd McClay signed the pact in the presence of New Zealand Prime Minister Christopher Luxon.
Negotiation history
FTA negotiations were re-launched in March 2025
The FTA negotiations were re-launched in March 2025 during Prime Minister Luxon's visit to India.
The talks were concluded in December 2025 after five rounds of formal discussions.
This was nearly a decade and a half after the two countries first started discussing a trade pact in 2010.
The pact will come into force next month on a mutually agreed date.
Tariff changes
Duty-free access for India's exports to New Zealand
The FTA provides 100% duty-free access for India's exports to New Zealand from day one, covering over 8,200 tariff lines across sectors like textiles, apparel, leather, footwear, engineering goods, processed foods, and pharmaceuticals.
Earlier, New Zealand had peak tariffs of up to 10% on key Indian exports such as ceramics, carpets, automobiles and auto components.
Tariff liberalization
India will liberalize about 70% of its tariff lines
In return, India will liberalize about 70% of its tariff lines, covering nearly 95% of New Zealand's exports by value.
About 57% of these will be duty-free immediately, while the rest will be phased out over time.
Sensitive sectors such as dairy and select agricultural products have been kept out of India's commitments under the FTA.
Mutual benefits
NZ exporters of these products will benefit
New Zealand exporters of wool, wine, coal, sheep meat, and forestry and wood products are expected to be among the biggest beneficiaries of the FTA.
Horticultural exports such as kiwifruit, apples, avocados and blueberries will also benefit from this agreement.
The pact also includes an agriculture cooperation program to help Indian farmers grow kiwis and apples.
Investment commitment
NZ's $20 billion investment commitment under FTA
Under the FTA, New Zealand has committed to investing $20 billion over 15 years.
The pact also opens a skilled employment pathway for Indian professionals through a new Temporary Employment Entry Visa with a quota of 5,000 visas.
There are also expanded mobility provisions for students and professionals.