India-New Zealand trade deal kicks in October 20
What's the story
The India-New Zealand Free Trade Agreement (FTA) will come into effect on October 20. The trade pact seeks to boost bilateral commerce, investment, and economic ties between the two nations. Under the deal, all Indian exports will get zero-duty access in New Zealand. In return, New Zealand has promised $20 billion worth of investments in India over the next 15 years.
Visa provisions
Temporary Employment Entry Visa scheme for skilled Indian professionals
The FTA also includes a Temporary Employment Entry Visa scheme for skilled Indian professionals.
Under this provision, 5,000 visas will be issued with a stay period of up to three years.
This move is expected to further strengthen the economic ties between India and New Zealand by facilitating the movement of skilled labor between the two countries.
Trade goals
Doubling bilateral trade in next 5 years
The two countries have set an ambitious target of doubling their bilateral trade in the next five years. To achieve this, the India Trade Promotion Organisation (ITPO) will open an office in New Zealand.
The FTA also ensures that sensitive sectors are protected by not offering tariff concessions on dairy products, onions, almonds, and sugar, among others.
Agricultural partnership
Agricultural productivity partnership to support Indian farmers
As part of the FTA, New Zealand has promised to support Indian farmers through an agricultural productivity partnership.
This is a major step toward strengthening agricultural cooperation between the two countries.
The agreement was finalized in December 2025 and signed in April 2026, making India have trade agreements with all members of the Regional Comprehensive Economic Partnership (RCEP) group, except China.
Trade figures
India's bilateral merchandise trade with New Zealand
India's bilateral merchandise trade with New Zealand was $1.3 billion in FY 2024-25, a 49% year-on-year increase.
Under the FTA, India will liberalize tariffs on 70% of its tariff lines for imports from New Zealand, covering 95% of bilateral trade.
However, certain products like apples will be subject to quotas and import duties above a certain price range, while kiwi fruit priced above $1.8 per kg will qualify for zero-duty access.