India–New Zealand FTA to Take Effect on October 20, 2026

CNB WORLD TIMES

FTA to Boost Indian Exports, Farmers and MSMEs

New Delhi, 19^th October: The India–New Zealand Free Trade Agreement (FTA) will come into force on October 20, 2026, coinciding with Vijay Dashami. The agreement is expected to create new opportunities for Indian exporters, farmers, micro, small and medium enterprises (MSMEs), artisans, women entrepreneurs and young professionals.

Union Minister of Commerce and Industry Shri Piyush Goyal and New Zealand’s Minister for Trade and Investment, Todd McClay, jointly announced the development during a virtual conference.

Under the agreement, New Zealand will provide 100% duty-free access to all Indian goods, removing customs duties on all tariff lines covering Indian exports. The agreement also includes agricultural cooperation, services-sector opportunities, employment pathways for Indian professionals and a commitment by New Zealand to facilitate USD 20 billion in investment into India.

New Opportunities for Indian Exporters

The removal of customs duties is expected to make Indian products more competitive in the New Zealand market. Major sectors likely to benefit include textiles, apparel, leather, footwear, gems and jewellery, engineering goods, automobiles and auto components, chemicals, pharmaceuticals, agricultural products and processed foods.

The agreement also provides duty-free access for wooden logs, coking coal, and metal waste and scrap, which could help strengthen manufacturing and MSME supply chains. Pharmaceutical and medical device companies are expected to benefit from streamlined regulatory processes.

The FTA will open new opportunities for Indian MSMEs, start-ups, artisans, women-led businesses and first-generation entrepreneurs. Lower trade costs, faster customs procedures and better access to market information are expected to help smaller businesses reach more international customers.

New Zealand has also committed to facilitating the registration of Indian Geographical Indications (GIs), which could help protect and promote products associated with traditional industries and rural artisans.

First-Ever JCB Machine Export to New Zealand

To mark the development, Shri Piyush Goyal flagged off the first-ever export of a JCB machine from India to New Zealand.

The government also plans to flag off exports from sectors such as agriculture, gems and jewellery, engineering, sporting goods, footwear and leather on the day the agreement comes into force.

These initiatives highlight the potential for Indian manufacturers to expand their presence in the New Zealand market.

Special Focus on Farmers and Agricultural Productivity

The agreement includes an Agricultural Productivity Partnership aimed at improving farm productivity, promoting modern technologies and strengthening farmers’ incomes.

The partnership will focus on apples, kiwifruit and honey through dedicated action plans. Cooperation will also cover horticulture, forestry, livestock and fisheries.

New Zealand will provide technical assistance for establishing Centres of Excellence for kiwifruit, apples and honey. These centres are expected to support farmers through technology transfer, training, improved cultivation practices and better post-harvest management.

Under the first phase of the Kiwifruit Action Plan, sites have been identified at Pfutsero in Nagaland and Magra in Uttarakhand. Two additional apple Centres of Excellence are proposed in Himachal Pradesh and Uttarakhand. Centres of Excellence for honey are also planned in Uttar Pradesh and West Bengal.

The initiatives aim to improve orchard management, reduce post-harvest losses and increase agricultural productivity.

Safeguards to Protect Indian Farmers

The agreement combines export opportunities with safeguards for sensitive agricultural sectors. Dairy products, sugar, edible oils and key agricultural commodities remain excluded from tariff concessions to protect Indian farmers, dairy producers, fisherfolk and rural communities.

Tariff Rate Quotas for apples, kiwifruit and Mānuka honey are linked to the implementation of the agricultural action plans. A Joint Agriculture Productivity Council will oversee these arrangements, linking market access with agricultural cooperation and farmer welfare.

The agreement also includes Rules of Origin, a bilateral safeguard mechanism and anti-circumvention provisions to ensure that its benefits reach eligible exporters.

New Zealand to Facilitate USD 20 Billion Investment

New Zealand has committed to facilitating USD 20 billion in investment into India under the agreement.

The proposed investment is expected to create opportunities in agriculture, manufacturing, infrastructure and start-ups. It could also support innovation, entrepreneurship and employment generation in line with the Make in India initiative.

Department of Commerce Secretary Shri Rajesh Agrawal said that the agreement would help deepen economic cooperation between the two countries. He stressed the need to convert the opportunities created by the FTA into tangible benefits for people and businesses across India.

He added that the government was working with industries and trade associations to spread awareness of the agreement across districts.

New Opportunities for Indian Students and Professionals

The FTA also creates new opportunities for Indian youth and professionals seeking overseas employment and international experience.

Indian professionals will have access to an annual quota of 5,000 Temporary Employment Entry visas. Another 1,000 Working Holiday visas will be available each year.

The agreement provides no numerical cap on Indian students. It also offers post-study work rights of up to three years for graduates with bachelor's and master's degrees in science, technology, engineering and mathematics (STEM), and up to four years for doctoral graduates.

These provisions are expected to strengthen educational, professional and people-to-people links between the two countries.

Expanded Access to New Zealand's Services Market

New Zealand has offered India its most extensive services commitments in any of its trade agreements to date.

The agreement provides market access in around 118 services sectors and Most-Favoured-Nation commitments in approximately 139 sub-sectors.

For the first time, New Zealand has also provided dedicated access in health and traditional medicine services, including Ayurveda, Yoga and other AYUSH systems.

These commitments are expected to create new opportunities for Indian service providers and professionals.

Leaders Highlight the Importance of the Agreement

Shri Piyush Goyal said that the agreement would create significant opportunities for Indian exporters, particularly MSMEs, artisans, farmers and women entrepreneurs.

He highlighted the importance of agricultural cooperation, including action plans for apples, kiwifruit and honey, and said the agreement supported the vision of Viksit Bharat 2047 through competitiveness, innovation, productive capacity and inclusive growth.

New Zealand Minister Todd McClay described the agreement as a major milestone in relations between the two countries. He said it would give New Zealand exporters access to India's market of approximately 1.4 billion people while enabling Indian goods to enter New Zealand duty-free.

He also emphasised that the agreement's success would depend on how effectively businesses in both countries used the opportunities it created.

Industry representatives from India and New Zealand also participated in the announcement and discussed potential benefits for sectors including services, footwear, engineering and agriculture.

Representatives from Himachal Pradesh, Nagaland, Uttarakhand, Uttar Pradesh and Arunachal Pradesh, along with collaborating organisations from New Zealand, attended the event focused on agricultural cooperation.

Agreement Supports India–New Zealand Trade Goals

Negotiations for the India–New Zealand FTA began on March 16, 2025, and concluded on December 22, 2025. The agreement was signed on April 27, 2026.

It supports the India–New Zealand Strategic Partnership: Roadmap to 2030, which sets an aspirational target of doubling bilateral trade in goods and services to NZ$7 billion, equivalent to approximately ₹35,000 crore, by 2030.

The agreement reflects the commitment of both countries to deepen economic cooperation, expand market access and create employment opportunities.

With duty-free access for Indian goods, agricultural productivity initiatives, new opportunities for professionals and a major investment commitment, the FTA is expected to strengthen trade relations and support inclusive economic growth.

The agreement also aligns with India's vision of Viksit Bharat 2047 by seeking to empower farmers, MSMEs, women entrepreneurs, artisans, start-ups, youth and professionals.