India and New Zealand today signed a Free Trade Agreement, with a host of Indian products are set to attract zero tariff in the southern trade partner after the FTA deal. Here’s a full list of the impacted sectors and items…
India and New Zealand today signed a free trade agreement (FTA) aimed at boosting two-way trade and investment. In a post on social media platform X, Union Commerce and Industry Minister Piyush Goyal called the agreement “India’s first women-led” FTA and a “defining milestone” in the bilateral economic journey between the two countries.
Goyal added that this bilateral deal was concluded in nine months and “reflects deep mutual trust, shared ambition, and a common commitment to prosperity.”
100% duty-free access for India goods
According to Goyal, the India-NZ FTA grants 100% duty-free access for Indian exports to New Zealand, “opening significant opportunities for MSMEs, farmers, women, youth, professionals, and job-creating sectors, while safeguarding India’s sensitive interests through a balanced and calibrated framework.”
“With zero-duty market access from the entry into force, at par with New Zealand’s other trade partners, Indian products will be fully competitive in that country, enjoying a level playing field,” he added.
“New Zealand’s grant of 100 % duty‑free access will strengthen India’s competitiveness across key manufacturing and labour‑intensive sectors in textiles, leather, footwear, engineering goods, plastics and processed foods,” according to Gautam Khattar, Principal at Price Waterhouse & Co LLP.
He added that the tariff‑rate quotas with minimum import prices safeguard domestic farmers, while explicit recognition of AYUSH and related wellness services expands opportunities for Indian practitioners in New Zealand.
What product categories does the FTA cover?
The deal covers all tariff lines, or product categories, and is “expected to significantly boost MSMEs and employment by enhancing competitiveness in labour-intensive sectors such as textiles, apparel, leather, footwear, gems and jewellery, engineering goods, and processed foods.”
Notably, New Zealand had earlier maintained peak tariffs of up to 10 per cent on key Indian exports, including ceramics, carpets, automobiles, and auto components.
Meanwhile, New Zealand products that will enjoy tariff reductions include wine, pharmaceutical drugs, polymers, aluminium, iron and steel articles, and goods under tariff rate quotas, such as Manuka honey, apples, kiwifruit, and albumins, including milk albumin.
Full list of Indian items set to attract 0% tariffs in New Zealand
| Sector | Items | Tariff under FTA | Pre-FTA tariff |
|---|---|---|---|
| Apparels and textiles | Accessories and miscellaneous items, apparel (knitted and woven), carpets and floor coverings, dresses, home textiles, packaging textiles, technical textiles, yarn and intermediates, and women’s apparel. | 0% | Up to 10% |
| Footwear and leather | Belts, finished leather (bovine, etc.), gloves, handbags, leather garments, miscellaneous containers and accessories, miscellaneous leather goods, processed leather (raw material) saddlery, suitcases, wallets. | 0% | Up to 10% |
| Engineering goods | Aluminium products, copper products, electrical machinery and equipment, mechanical machinery (industrial equipment), industrial machinery parts and equipment, instruments and precision equipment, iron and steel products, pipes, tubes and structural components, tools and industrial hardware, and transport equipment (vehicle and parts). | 0% | Up to 10% |
| Pharmaceuticals | Medical dressing and adhesive materials, medical polymers and specialised materials, nutritional and therapeutic preparations, textile-based medical consumables, and specialised medical appliances. | 0% | Up to 5% |
| Agricultural and allied | Beverages and extracts, oil, fats and niche products, packaged and cereal-based foods, primary and semi-processed vegetables, processed food products, and spices and seasonings. | 0% | Up to 5% |
| Marine products | Crustaceans and molluscs, dried and salted fish products, fish (fresh, chilled and frozen), fish extracts, frozen shrimps and prawns, molluscs including squid and octopus, prepared and preserved fish, and processed seafood products. | 0% | Up to 5% |
| Jewellery and gems | Articles of stones and precious metals, gold and silver jewellery, imitation jewellery, pearls, precious and semi-precious stones. | 0% | Up tp 5% |
| Plastics and rubber | Kitchenware, packing materials, pipes and fittings, plastic articles and sheets and films | 0% | Up to 10% |
| Electronics | Circuit breakers, control panels, electric motors, filtering machinery, generating sets, insulated conductors, machinery parts, mineral processing machinery, refrigerators, and refrigerating equipment. | 0% | Up to 10% |
| Chemicals | Adhesives, candles, cleaning agents, hair care, industrial salts, inorganic chemicals, lubricants, metal oxides, organic intermediates, perfumes and cosmetics, pesticides, pharmaceutical goods, soaps, solvents, skin care, specialty chemical preparations and washing preparations. | 0% | Up to 5% |
| Source: Ministry of Commerce and Trade, 27 April 2026 | |||
Notably, the India-NZ bilateral deal also includes a commitment to facilitate $20 billion in investment into India. A rebalancing clause is incorporated into the agreement to provide a framework for addressing any shortfall in investment delivery, thereby ensuring robust and tangible economic outcomes.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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