India-New Zealand trade pact takes effect on October 20: How it benefits both sides | Key highlights
India's free trade agreement (FTA) with New Zealand is set to come into force on October 20, coinciding with Dussehra. The pact aims to double bilateral trade in goods and services to about ₹35,000 crore by 2030.
It is also expected to open up opportunities for services, professionals, students and agricultural cooperation. In addition, New Zealand will be facilitating $20 billion in foreign direct investment into India over the next 15 years.
The trade pact was signed on April 27, 2026, following the announcement of the conclusion of negotiations in December 2025. With the implementation of the FTA, India will have trade agreements with all members of the Regional Comprehensive Economic Partnership (RCEP), except China.
New Zealand will provide 100% duty-free market access to Indian exports from Tuesday, covering all tariff lines and product categories. This is India's first FTA to offer full duty-free access from the time it took effect.
The removal of import duties will eliminate the existing tariff disadvantage of up to 10% previously faced by Indian exporters in New Zealand.
Key beneficiaries include exporters of fruits and vegetables, coffee, tea, cocoa, spices, cereals, processed foods, textiles, clothing, leather, footwear, pharmaceuticals, engineering goods, marine products, plastics and rubber.
New Zealand has also agreed to open up 118 services sectors and sub-sectors to Indian service providers, including IT, professional services, telecommunications, construction, education, financial services and tourism.
This will make it easier for Indian companies and professionals to provide services in New Zealand. Intra-company transferees can stay for up to three years, while business visitors and workers installing or servicing equipment can stay for up to 90 days in a 12-month period. Contractual service providers and independent professionals can stay for up to 12 months.
The trade pact also introduces temporary employment visa pathway for skilled Indians, with a quota of 5,000 visas at any time for stays of up to three years. Eligible fields include IT, engineering, construction, education, healthcare, as well as yoga instructors, chefs, music teachers, and Ayush practitioners.
India has excluded several products considered sensitive to domestic industries from the FTA. These include dairy products such as milk, cream, whey, yoghurt and cheese, as well as animal products other than sheep meat and agricultural items such as onions, chana, peas, corn and almonds.
Sugar, artificial honey, and animal, vegetable or microbial fats and oils are also excluded.
Other categories on the exclusion list include arms and ammunition, precious metals and finished jewellery, copper products such as cathodes, cartridges, rods, bars and coils, and aluminium products such as ingots, billets, wire, rods and bars.
India is giving tariff concessions on 70% of its tariff lines, covering about 95% of the value of current bilateral trade. The remaining 29.97% of tariff lines have been kept outside the concessions.
The agreement also allows duty-based quotas for imports of apples, kiwifruit, manuka honey and albumins. These are backed by minimum import price (MIP) requirements and other safeguards to protect domestic producers.
The pact also provides for customs clearance within 48 hours for cargo and 24 hours for express and perishable consignments. Digital certification and self-certification of rules of origin for eligible status holders are intended to reduce procedural delays and compliance costs.
Bilateral trade declined about 11% to $1.15 billion in 2025-26 from $1.3 billion in the previous fiscal year. India's exports stood at $566.51 million, while imports were $589.1 million, resulting in a meagre trade deficit of $22.59 million for India.
(with inputs from PTI)
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