The India-New Zealand Free Trade Agreement (FTA) came into force on October 20, 2026, marking a new phase in economic relations between the two countries. The agreement aims to strengthen bilateral trade, expand market access for Indian exporters and facilitate investment of US$20 billion from New Zealand into India.
Commerce Secretary Rajesh Agrawal said the agreement is intended to deepen trade and investment ties, strengthen supply-chain integration and promote regulatory cooperation. He highlighted the role of free trade agreements in expanding market access for Indian businesses and building more resilient global supply chains. Both countries also aim to double bilateral trade in goods and services to approximately NZ$7 billion by 2030.
India-New Zealand FTA to Expand Investment and Market Access
The agreement is expected to facilitate US$20 billion in investment from New Zealand into India over 15 years, creating potential opportunities across agriculture, manufacturing, infrastructure and startups. It also provides Indian service providers with expanded access to the New Zealand market in areas such as information technology, professional services, construction, tourism and audio-visual services.
The FTA introduces mobility provisions for Indian professionals through dedicated visa quotas and provides post-study work opportunities for eligible students. These measures are expected to create additional pathways for professional engagement and strengthen people-to-people ties.
Indian Exporters to Gain Market Access
The agreement provides 100% duty-free access to the New Zealand market for Indian exports from the date it took effect. Sectors such as textiles, apparel, leather, footwear, engineering goods, pharmaceuticals and processed food are among those expected to benefit from improved export competitiveness.
Indian pharmaceutical and medical device exporters are also expected to benefit from provisions designed to facilitate market access and streamline regulatory processes.
At the same time, India has retained protections for sensitive agricultural sectors. The agreement excludes products such as dairy, sugar and edible oils from tariff concessions, according to the supplied information.
India-New Zealand FTA Strengthens Bilateral Economic Ties
The agreement is expected to support trade, investment and employment opportunities as both countries deepen their economic engagement. With improved market access for Indian goods and services, the India-New Zealand FTA provides a framework for businesses and professionals to explore opportunities in each other’s markets while maintaining safeguards for sensitive domestic sectors.
