India’s free trade agreement with New Zealand officially entered into force on October 20, 2026, marking the 17th operational pact for the country. According to ThePrint, the agreement, which was signed on April 27, 2026, provides 100 percent of Indian goods with zero import duty in New Zealand. This immediate duty-free access covers all tariff lines, including labor-intensive sectors such as textiles, leather, and footwear, removing previous tariff disadvantages of up to 10 percent. ThePrint reported that this is the first FTA where India receives full duty-free access across all product categories from the moment it enters into force.
Commerce and Industry Minister Piyush Goyal stated that the pact aims to increase bilateral trade from approximately USD 2.4 billion to around NZD 7 billion by 2030. The agreement also includes provisions for USD 20 billion in foreign direct investment from New Zealand to India over the next 15 years. New Zealand has committed to opening 118 service sectors to Indian providers, including IT, telecommunications, and financial services. Additionally, the pact creates a temporary employment visa pathway with a quota of 5,000 visas for skilled Indians in fields such as engineering, healthcare, and yoga instruction.
To protect domestic industries, India’s exclusion list includes sensitive categories like dairy products, sugar, and certain metals. ThePrint noted that India is granting tariff concessions on 70 percent of its tariff lines, which cover about 95 percent of current bilateral trade value. New Zealand Trade and Investment Minister Todd McClay said that 95 percent of New Zealand’s current exports to India would benefit from tariff elimination or substantial reductions. Prime Minister Christopher Luxon described the deal as a historic agreement that would help grow both economies, noting that Kiwi businesses could reach over a billion more customers.
Experts cited by ThePrint, including Gulzar Didwania of Deloitte India, suggested the deal may support higher FDI inflows and deeper value-chain integration. Shishir Priyadarshi of the Chintan Research Foundation argued that the pact strengthens India’s strategic position in the Indo-Pacific. Despite the new agreement, bilateral trade had declined by about 11 percent to USD 1.15 billion in 2025-26, with India recording a trade deficit of USD 22.59 million. ThePrint reported that customs clearance under the pact will be within 48 hours for cargo and 24 hours for perishable items, aiming to reduce compliance costs for exporters.