India-New Zealand FTA to Open Tariff-Free Access and Target $5 Billion in Trade
The India-New Zealand free trade agreement is expected to take effect in October, with Indian exports gaining duty-free access across more than 8,200 tariff lines. India will reduce or eliminate duties on about 95% of New Zealand exports, while sensitive agricultural products remain excluded.
Agreement scheduled to take effect in October
The free trade agreement between India and New Zealand is expected to enter into force in October, following its signing on 27 April at Bharat Mandapam in New Delhi. Jagran reported that the precise implementation date will be determined by mutual agreement between the two governments.
The pact will give Indian products duty-free access to the New Zealand market across more than 8,200 tariff lines. The covered sectors include textiles, garments, leather, footwear, engineering goods, processed food, pharmaceuticals, gems and jewellery. These industries include many labour-intensive manufacturers and small and medium-sized enterprises that could benefit from lower entry costs.
Before the agreement, New Zealand applied tariffs of up to 10% to several important Indian exports, including ceramics, carpets, automobiles and automotive components. Removing those duties should improve the price competitiveness of Indian suppliers, although actual sales growth will also depend on freight costs, regulatory compliance and demand in New Zealand's relatively small market.
India liberalizes 95% of New Zealand exports
India has agreed to reduce or eliminate duties on about 95% of New Zealand's export products. Exporters of wool, wine, coal, sheep meat, forestry products and wood products are expected to be among the principal beneficiaries. Horticultural suppliers selling kiwifruit, apples, avocados and blueberries may also gain improved access.
Market opening will not extend to every agricultural category. Dairy products including milk, cream, cheese and yogurt, as well as spices, sugar and several other goods, have been excluded to protect Indian farmers and domestic industries. The exclusions limit New Zealand's access in politically sensitive segments, particularly dairy, while allowing liberalization in other commodity and manufactured-goods categories.
The agreement also provides for agricultural cooperation intended to help Indian farmers cultivate kiwifruit and apples. This provision could bring technical knowledge and production expertise into India without removing the tariff protection retained for sensitive farm products.
Investment and bilateral trade targets
New Zealand has agreed to promote investment of up to $20 billion in India, according to Jagran. The report identifies investment, manufacturing, agricultural processing and logistics as areas in which the agreement could support employment and the development of micro, small and medium-sized enterprises. The wording points to an investment-promotion objective rather than a detailed schedule of committed projects.
The source provides two measures of the current commercial relationship. It reports merchandise trade of about $1.3 billion in 2024-25, while total trade in goods and services reached approximately $2.4 billion in 2024. The figures use different coverage and periods, so they are not directly comparable.
The governments plan to raise existing trade to roughly $5 billion over the next five years, approximately doubling the broader goods-and-services figure cited by Jagran. Indian exporters will gain the wider tariff-free opening, while New Zealand suppliers will receive substantial but not universal liberalization. For producers and traders, the largest immediate effects are therefore likely to appear in product lines where duties of up to 10% disappear and where established logistics and regulatory approvals already support bilateral sales.
