India and New Zealand announced that their free trade agreement would take effect on 20 October 2026, coinciding with Vijay Dashami. Commerce Minister Piyush Goyal and New Zealand Trade Minister Todd McClay confirmed the date during an online meeting.
Piyush Goyal described the deal as a chance to expand opportunities for households and businesses in both nations. He said 100% tariff-free entry to New Zealand would benefit Indian MSMEs, craftspeople, growers and women entrepreneurs. Farming cooperation includes plans covering kiwifruit, apples and honey, as well as horticulture training, centres of excellence and measures to cut losses after harvesting. Goyal linked the agreement to Viksit Bharat 2047, the development vision for India's 100th independence anniversary.
Todd McClay called implementation an important step in bilateral ties. He noted that New Zealand businesses could reach India's 1.4 billion consumers, while exporters on both sides would benefit from reduced trade barriers. All Indian goods would receive duty-free treatment in New Zealand, and many New Zealand exports to India would face lower tariffs. The ultimate measure, he said, would be whether companies use the opportunities created.
Commerce Secretary Rajesh Agrawal said the treaty is intended to deepen economic links as well as encourage investment from New Zealand. He noted that India has room to expand its trade relationship with the Pacific nation and said industry associations would help businesses across Indian districts understand the new arrangements.
India's government presented the agreement as another step towards jobs, market access and opportunities for smaller businesses, women and young people. These objectives align with its Viksit Bharat 2047 programme.
Business representatives discussed anticipated changes for agriculture, engineering, footwear and professional services during the launch programme.
The commerce minister also flagged off a JCB machine for export from India to New Zealand. Additional shipments spanning farm goods, sports equipment, jewellery, leather products and engineering items were planned to mark implementation.
New Zealand removed duties across tariff lines for Indian products, including rates previously reaching 10%. Expected beneficiaries include textiles, footwear, jewellery, automotive components, medicines, chemicals and processed foods. Reduced costs for raw materials such as logs, scrap metal and coking coal may also support Indian manufacturing supply chains.
The services chapter offers market entry across approximately 118 sectors, with most-favoured-nation commitments in around 139 subsectors. New Zealand has included specified access for traditional healthcare services such as Ayurveda and Yoga.
The arrangements provide annual quotas of 5,000 temporary employment-entry visas and 1,000 working-holiday visas for eligible Indian applicants. Indian student numbers face no overall numerical limit, while eligible STEM graduates may work for up to three years after study and doctoral scholars for up to four.
Beyond trade duties, a farm-productivity partnership will bring technical cooperation and agricultural expertise to Indian producers. It covers kiwifruit, apples and honey, alongside work in horticulture, forestry, fisheries and livestock.
Under the proposed fruit and honey programmes, New Zealand will contribute technical advice for specialised agricultural centres. Initial kiwifruit sites have been identified in Pfutsero, Nagaland, and Magra, Uttarakhand. Further apple centres are proposed in Himachal Pradesh and Uttarakhand, with honey centres envisaged in Uttar Pradesh and West Bengal.
Officials and organisations from Himachal Pradesh, Nagaland, Uttarakhand, Uttar Pradesh, Arunachal Pradesh and New Zealand participated in the implementation event.
Import tariff-rate quotas covering apples, kiwifruit and Mānuka honey are linked to the agricultural action plans. A joint council will oversee the connection between trade access and farmers' interests.
New Zealand has pledged to help facilitate USD 20 billion in investment in India. Agriculture, production, infrastructure and emerging enterprises were identified as potential areas of benefit.
India has kept sensitive farm products, including dairy, sugar, edible oils and other key commodities, outside tariff concessions. Origin requirements, safeguards and measures against circumvention aim to limit improper use of the agreement.
Indian small businesses, first-time exporters, artisans and enterprises led by women and young people could benefit from lower border charges and improved information exchange with New Zealand partners. The agreement also seeks to connect their respective small-business networks.
A separate provision commits New Zealand to help register Indian geographical indications, which can strengthen recognition of traditional and region-specific products.
Officials describe the agreement as a way to widen economic participation among farmers, professionals, start-ups and small firms. It is linked to the Viksit Bharat 2047 policy vision.
Negotiations started on 16 March 2025 and finished on 22 December 2025, with the formal signing taking place on 27 April 2026. The deal supports the India–New Zealand strategic roadmap through 2030, which aims to increase two-way goods and services trade to NZ$7 billion, equivalent to ₹35,000 crore, by 2030.
Read the India–New Zealand agreement factsheet: https://www.commerce.gov.in/files/2026-04/final_0.pdf
Official questions and answers: https://www.commerce.gov.in/files/2026-04/FAQs%20-%20India-New%20Zealand%20FTA.pdf
Details of the agreement signing: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2255914®=3&lang=1
Announcement of the implementation date: https://www.pib.gov.in/PressReleaseDetail.aspx?PRID=2313143®=48&lang=1
Government release credits: Abhishek Dayal, C N Abhijith Narayanan and Anushka Pandey