The India-New Zealand Free Trade Agreement (FTA) will come into force on October 20, marking the implementation of a trade pact aimed at expanding bilateral commerce, boosting investments and strengthening economic ties between the two countries.
Commerce Secretary Rajesh Agarwal said it is the seventh trade agreement to get operationalised in past 5 years.
Under the agreement, 100% of India’s exports will receive zero-duty market access in New Zealand. New Zealand has also committed to facilitating investments worth $20 billion into India over the next 15 years.
The agreement provides a Temporary Employment Entry Visa pathway for skilled Indian professionals, with a quota of 5,000 visas and a permitted stay of up to three years.
Both countries aim to double bilateral trade over the next five years. The India Trade Promotion Organisation (ITPO) will also open an office in New Zealand to promote trade between the two countries.
India has retained protections for sensitive sectors, with no tariff concessions for dairy products, onions, almonds, sugar and similar categories. New Zealand has also assured support for Indian farmers through an agricultural productivity partnership.
India and New Zealand concluded negotiations for the FTA in December 2025 and signed the agreement in April 2026.
With the pact coming into force, India will have trade agreements with all members of the Regional Comprehensive Economic Partnership (RCEP) grouping except China.
India’s bilateral merchandise trade with New Zealand stood at $1.3 billion in the financial year 2024-25, up 49% year-on-year.
What New Zealand gets
Under the FTA, India will liberalise tariffs across 70% of its tariff lines for imports from New Zealand, covering 95% of bilateral trade.
New Zealand apples will be allowed into India at a 25% import duty, subject to quotas. The quota will increase from 35,000 metric tonnes in the second year of implementation to 45,000 metric tonnes from the sixth year.
Kiwi fruit priced above $1.80 per kg will qualify for zero-duty access, with the quota rising from 8,000 metric tonnes in the second year to 15,000 metric tonnes from the sixth year.
Albumin exports from New Zealand will attract an 11% duty, with the quota increasing from 1,500 metric tonnes in the second year to 3,000 metric tonnes from the fifth year.
For New Zealand-certified Manuka honey, India has set a minimum import price of $30 per kg. The quota will be 40 metric tonnes in the first year and increase to 200 metric tonnes from the second year.
The import quota window for apples will run from April 1 to August 31, while kiwi imports will be permitted under the quota from April 1 to October 15. Albumin and Manuka honey will have year-round import windows.
