The India-New Zealand Free Trade Agreement (FTA) took effect today, October 20, granting Indian exporters immediate duty-free access to the New Zealand market. This agreement eliminates tariffs on 100% of India’s exports to New Zealand, aiming to boost trade, investment, and opportunities for Indian businesses, workers, and students.
Signed on April 27 in New Delhi by Commerce and Industry Minister Piyush Goyal and his New Zealand counterpart Todd McClay, the deal received legislative approval in Wellington on September 16.
Key sectors benefiting from the removal of tariffs of up to 10% include textiles and apparel, leather and footwear, gems and jewelry, engineering goods, and processed food. Indian manufacturers will also gain tariff-free access to inputs like wooden logs, coking coal, and metal scrap.
India has kept specific agricultural sectors outside tariff concessions to safeguard domestic producers. This protection covers dairy, non-sheep meat, sugar, edible oils, and other key crops. Imports of New Zealand apples, kiwifruit, and Manuka honey will be managed via tariff-rate quotas, minimum import prices, and seasonal windows.
Read Also: Essex teen’s CoolTowel hits £750k revenue
The pact establishes an Agriculture Productivity Partnership aimed at improving practices in orchard management, post-harvest handling, food safety, and beekeeping.
New Zealand has pledged to channel $20 billion into Indian industries, spanning agriculture, manufacturing, infrastructure, and the startup ecosystem. Both countries have set a joint target to double bilateral trade in goods and services to NZ$7 billion (approximately ₹35,000 crore) by 2030.
The agreement expands opportunities for Indian professionals across 118 sectors, including IT, construction, tourism, and professional services. It provides 5,000 Temporary Employment Entry visas for skilled Indians, 1,000 Working Holiday visas annually for young Indians, and post-study work rights of up to three years for STEM graduates and four years for doctoral scholars.
Pharmaceutical and medical device firms in India are expected to gain quicker market entry since New Zealand now recognizes inspection approvals from the US FDA, EMA, UK MHRA, and Health Canada.