Trade / India–New Zealand FTA to Take Effect on Vijayadashami; New Opportunities for Indian Exporters

New Delhi, Oct 19: Union Minister of Commerce and Industry Piyush Goyal and New Zealand’s Minister for Trade and Investment, Todd McClay, on Monday jointly announced that the India–New Zealand Free Trade Agreement (FTA) will enter into force on 20 October 2026, on the occasion of Vijay Dashmi, a day symbolising victory and new beginnings, officials said.

The announcement was made during a virtual conference between the two leaders, the officials added.

Market Access

Under the agreement, New Zealand has eliminated customs duties on all tariff lines covering Indian exports, removing tariffs of up to 10 per cent. Sectors expected to benefit include textiles, apparel, leather, footwear, gems and jewellery, engineering goods, automobiles, chemicals, pharmaceuticals, agricultural products and processed foods.

Goyal described the pact as a "winning partnership" that would open significant opportunities for Indian exporters, particularly MSMEs, artisans, farmers and women entrepreneurs. He said the agreement aligns with Prime Minister Narendra Modi's vision of Viksit Bharat 2047.

Services and Mobility

The FTA provides market access across nearly 118 service sectors and includes Most-Favoured-Nation commitments in around 139 sub-sectors. For the first time, New Zealand has also provided dedicated access for health and traditional medicine services, including Ayurveda, Yoga and other AYUSH systems.

Indian professionals and youth will benefit from an annual quota of 5,000 temporary employment visas and 1,000 working holiday visas. Indian students will continue to have access to post-study work rights, with no numerical cap on admissions.

Agriculture Partnership

A key component of the agreement is the Agricultural Productivity Partnership, aimed at improving farm productivity through technology transfer, training and best practices. Dedicated action plans have been drawn up for kiwifruit, apples and honey, along with the establishment of Centres of Excellence in various States.

The agreement also links tariff rate quotas for these products with the implementation of agricultural action plans under the supervision of a Joint Agriculture Productivity Council.
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Investment Push

New Zealand has committed to facilitate USD 20 billion in investments into India across agriculture, manufacturing, infrastructure and start-up sectors. The pact also includes safeguards for sensitive sectors, with dairy products, sugar, edible oils and several agricultural commodities kept outside the ambit of tariff concessions.

Negotiations for the FTA began in March 2025, concluded in December 2025 and the agreement was signed in April 2026. Both countries expect the pact to support their goal of doubling bilateral trade in goods and services to NZ$7 billion (Rs35,000 crore) by 2030.