India and New Zealand Ratify Free Trade Agreement

India and New Zealand formally ratified a Free Trade Agreement (FTA) on September 21, 2026, following the exchange of documents between New Zealand Trade and Investment Minister Todd McClay and India's High Commissioner to New Zealand, Muanpuii Saiawi. The pact will enter into force on October 20, 2026, a date Piyush Goyal, India's Commerce and Industry Minister, noted was chosen to coincide with the auspicious day of Dussehra, also known as Vijay Dashami.

The agreement provides Indian exporters duty-free access to 100% of the New Zealand market, specifically benefiting the chemicals, pharmaceuticals, textiles, and machinery sectors. In return, India will eliminate or reduce tariffs on 95% of New Zealand exports by value. While 57% of these exports—including wool, sheep meat, and wood—will be tariff-free immediately, others will see phased reductions over three to ten years. India has excluded sensitive sectors, such as dairy and sugar, from these concessions.

Beyond trade, the deal establishes mobility pathways, including a quota of 5,000 Temporary Employment Entry visas for skilled Indian professionals and expanded post-study work opportunities. New Zealand has also committed to facilitating USD 20 billion in investment into India over the next 15 years. Prime Ministers Narendra Modi and Christopher Luxon have set a target to double bilateral trade to approximately NZ$7 billion (Rs 35,000 crore) by 2030, with direct flights between the two nations expected within a year.