India and New Zealand Implement Free Trade Agreement
India and New Zealand launch a free trade agreement on October 20, 2026, granting Indian exports duty-free access and securing $20 billion in New Zealand investment.
The Government of India and the New Zealand Government will implement a Free Trade Agreement (FTA) on October 20, 2026. The pact grants 100% duty-free access for all Indian exports to New Zealand, eliminating tariffs on 8,284 tariff lines including textiles, pharmaceuticals, and engineering goods. To mark the launch, Commerce and Industry Minister Piyush Goyal flagged off the first export of a Pune-made JCB machine to New Zealand.
In exchange, India will reduce tariffs on 70% of its tariff lines. Immediate duty-free access is granted to New Zealand wool, coal, and sheep meat, while Manuka honey and albumins receive immediate quotas. Access for kiwifruit and apples will begin in 2027 under specific volume caps and minimum import prices to protect domestic farmers. India has excluded sensitive sectors, including dairy, sugar, and edible oils, from tariff concessions.
Beyond trade, the agreement includes a commitment from New Zealand to facilitate USD 20 billion in investments into India over the next 15 years to support infrastructure and innovation. The two nations have also elevated their relationship to a Strategic Partnership, expanding maritime cooperation through the Indo-Pacific Oceans Initiative and planning their first bilateral naval exercise. Prime Ministers Narendra Modi and Christopher Luxon have set a target to double bilateral trade to approximately NZD 7 billion by 2030.
