India-New Zealand FTA to come into force on 20 October: Goyal

The India-New Zealand free trade agreement (FTA) will come into force on 20 October, Union commerce and industry minister Piyush Goyal said on Monday, with the pact providing duty-free access to New Zealand for 100% of Indian exports from the first day of implementation.

Goyal announced the implementation date after the two countries completed their domestic procedures for the agreement. He said India and New Zealand aim to double bilateral trade in goods and services to ₹35,000 crore by 2030.

“A Vijay (victory) for both nations,” Goyal said in a post announcing the deal. The agreement is expected to improve market access for Indian exporters, particularly in labour-intensive sectors such as textiles and apparel, leather and footwear, gems and jewellery, engineering goods, processed foods, ceramics and carpets.

Indian exports will receive duty-free access across all tariff lines in the New Zealand market from the day the pact takes effect. New Zealand’s Parliament approved legislation to implement the agreement on 16 September by 93 votes to 29, clearing the domestic legislative process required for the agreement to take effect.

The pact was signed by the two countries in April. New Zealand Prime Minister Christopher Luxon said the agreement would create greater opportunities for businesses and exporters. “Almost exactly three years ago, I committed that National would secure a free trade deal with India within our first term if elected.

And today, we finalised the deal, which comes into force next month,” Luxon said in a post on X. “It is exciting to think of how many businesses will grow as a result of this FTA, and then consider what that means for them, for the people who work for them, and for the country as a whole.

It means more opportunities for exporters, stronger growth for businesses, and more jobs and higher incomes for New Zealand,” Luxon added. Under the agreement, New Zealand will provide duty-free access for 100% of tariff lines covering Indian exports.

India, meanwhile, has offered tariff liberalization covering around 70% of tariff lines, accounting for about 95% of the value of bilateral trade. India has retained protection for several sensitive sectors, including dairy and a range of agricultural products.

Products such as peas, onions, chickpeas, almonds, and sugar have been excluded from the tariff concessions. The agreement covers trade in both goods and services and includes provisions relating to the temporary entry of skilled professionals, student mobility and cooperation in areas such as agriculture and technology.

The pact also includes a commitment by New Zealand to facilitate up to $20 billion of investment into India over 15 years. Goyal has said New Zealand companies could invest in and manufacture in India to serve the domestic market, and use India as a base to export to other markets with which it has trade agreements.

Bilateral goods and services trade between India and New Zealand stood at about $2.4 billion in 2024-25. India’s exports to New Zealand include pharmaceuticals, textiles, engineering goods and refined petroleum products, while New Zealand’s exports to India include wood and forestry products, wool, metals and agricultural products.

The agreement comes as India seeks to expand market access for its exporters through a wider network of trade agreements. For Indian exporters, the removal of tariffs in New Zealand is expected to address the tariff disadvantage faced by Indian goods against products from countries that already have preferential trade arrangements with New Zealand.

“The ratification of the India-New Zealand FTA marks a new chapter in the bilateral trade between the two countries. The trade pact provides for zero-duty market access for all Indian exports, including engineering goods," said Pankaj Chadha, chairman, Engineering Exports Promotion Council.

India's engineering exports to New Zealand have been rising and are expected to continue growing. India’s engineering exports to New Zealand grew from $129.8 million in 2024-25 to $140.5 million in 2025-26, showing steady momentum in a relatively small but high-potential market, Chadha added.

Harsh Kumar is a policy reporter at Mint (HT Media Group), where he covers the Ministry of Commerce and Industry along with key departments of the Ministry of Finance, including the Department of Economic Affairs (DEA) and the Department of Financial Services (DFS).

With over five years of experience in business and economic journalism, he has developed strong expertise in tracking policy developments and their wider economic impact. He has previously worked with Business Standard, Moneycontrol, and Outlook Money, where he reported extensively on banking, financial services, and the broader economy.

Over the years, he has built a reputation for delivering accurate, insightful, and impactful stories, supported by a keen eye for detail and a consistent track record of breaking exclusive news. An alumnus of Jamia Millia Islamia, Harsh closely follows regulatory changes and key economic trends shaping India’s financial and industrial landscape.

His reporting aims to simplify complex policy issues for a wider audience while maintaining depth and credibility. Outside of work, he enjoys tracking policy developments, finding scoops, and travelling, reflecting his curiosity about how economic decisions shape everyday life.

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