India’s Free Trade Agreement (FTA) with New Zealand comes into effect on October 20, opening up new trade opportunities for Indian businesses and exporters. Under the agreement, New Zealand will remove tariffs on 100% of India’s exports from the start, creating opportunities across several industries.
The agreement is expected to support trade, investment and professional mobility between the two countries. It also includes provisions covering agricultural cooperation, skilled Indian workers, students and pharmaceutical companies.
The India-New Zealand FTA was signed in New Delhi on April 27 by India’s Commerce and Industry Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment, Todd McClay. New Zealand’s Parliament approved the relevant legislation on September 16.
Indian Exporters to Get Duty-Free Access to New Zealand
The agreement removes New Zealand’s import tariffs on all Indian exports covered by the deal. Indian exporters are expected to benefit from the removal of duties of up to 10% on various products.
The key sectors expected to benefit include textiles and apparel, leather and footwear, gems and jewellery, engineering goods, and processed food.
Indian manufacturers will also receive tariff-free access to certain industrial inputs, including wooden logs, coking coal and metal scrap. Lower import costs for these materials could support businesses that depend on them for production.
Agriculture Safeguards and Cooperation for Farmers
While the agreement expands market access for Indian exporters, several sensitive agricultural products have been kept outside India’s tariff concessions.
These include dairy products, animal meat except sheep, sugar, edible oils and key agricultural commodities.
Imports of New Zealand apples, kiwifruit and Manuka honey will be regulated through tariff-rate quotas, minimum import prices and seasonal import windows.
The agreement also establishes an Agriculture Productivity Partnership to encourage cooperation in areas such as orchard management, post-harvest practices, food safety and sustainable beekeeping.
New Zealand’s $20 Billion Investment Commitment
New Zealand has committed to facilitating $20 billion in investment into India. The proposed investment covers sectors including agriculture, manufacturing, infrastructure and startups.
India and New Zealand have also set a target of doubling bilateral trade in goods and services to NZ$7 billion, equivalent to around ₹35,000 crore, by 2030.
The investment commitment and trade target form part of the broader effort to strengthen economic ties between the two countries.
More Opportunities for Indian Professionals and Students
The FTA expands market access for Indian services companies and professionals across around 118 sectors. These include information technology, construction, tourism and professional services.
The agreement also provides for several mobility opportunities for Indians:
- 5,000 Temporary Employment Entry visas for skilled Indian workers.
- 1,000 Working Holiday visas annually for young Indians.
- Post-study work rights of up to three years for STEM graduates.
- Post-study work rights of up to four years for doctoral scholars.
These provisions are intended to create additional opportunities for Indian professionals and students seeking work or experience in New Zealand, subject to the applicable eligibility requirements.
Indian pharmaceutical and medical device companies are also expected to benefit from faster market access. New Zealand will accept inspection approvals from regulatory authorities including the US Food and Drug Administration (FDA), the European Medicines Agency (EMA), the UK’s Medicines and Healthcare products Regulatory Agency (MHRA), and Health Canada.
Overall, the agreement covers trade in goods and services, investment, agricultural cooperation and professional mobility. Its impact will depend on how businesses, workers and other eligible participants use the opportunities available under the final agreement.
Disclaimer: This article is intended for general informational purposes only and summarises the provisions described in the India-New Zealand Free Trade Agreement. Actual benefits, visa access, tariff treatment and eligibility requirements are subject to the agreement’s official terms, applicable regulations and implementation procedures. Readers and businesses should consult official government notifications before making trade, investment, employment or travel decisions.