India and New Zealand Set October Date for Trade Pact

The Government of India and the New Zealand Government will officially implement a Free Trade Agreement on October 20, 2026, following the completion of ratification procedures. Signed in April 2026 by Commerce Minister Piyush Goyal and Trade Minister Todd McClay, the pact aims to double bilateral trade to approximately ₹35,000 crore (NZ $7 billion) by 2030, a target supported by Prime Ministers Narendra Modi and Christopher Luxon.

Under the terms, New Zealand provides 100% duty-free access to Indian exports, specifically benefiting the pharmaceuticals, textiles, leather, and engineering sectors. In return, India will grant immediate duty-free access to 57% of New Zealand exports, including wool, coal, and sheep meat, with that figure expected to rise to 82% over time. India has also reduced duties on kiwifruit, Manuka honey, and apples, though the latter will drop from 50% to 25% subject to quotas and minimum import prices.

To protect domestic farmers, India excluded sensitive sectors such as dairy, sugar, onions, and almonds from tariff concessions. As part of the strategic partnership, New Zealand committed to facilitating up to US $20 billion in investments in India over the next 15 years. The agreement allows India to diversify its export markets amid global trade uncertainty and new U.S. tariffs targeting nations that purchase Russian oil.