Author: Aadarsh Patel | EQMint
India and New Zealand are moving closer to implementing their Free Trade Agreement (FTA), a pact expected to expand market access for Indian exporters while bringing several New Zealand products into the Indian market at lower tariff rates.
New Zealand’s Parliament passed legislation on September 16, 2026, to implement the agreement. India’s Commerce Secretary Rajesh Agrawal has said the FTA is expected to come into force by late October, with the exact implementation date to be announced.
Indian Exporters to Get Zero-Duty Access
A key feature of the agreement is New Zealand’s commitment to provide 100% duty-free access for Indian exports from the date the pact comes into force.
The arrangement covers a wide range of Indian products and is expected to benefit sectors including textiles and apparel, leather and footwear, marine products, gems and jewellery, handicrafts and engineering goods.
The agreement could improve the price competitiveness of Indian products in the New Zealand market and create additional opportunities for exporters, particularly small and medium-sized businesses.
New Zealand Products Could Become More Affordable
The agreement also opens India’s market further to New Zealand exporters. Around 95% of New Zealand’s exports to India are set to receive tariff reductions or elimination under the agreement.
Products covered by the concessions include agricultural and food products, horticulture, forestry and other goods. However, India has retained protections for several sensitive sectors, particularly dairy and certain agricultural products.
For Indian consumers, lower import duties on eligible products could eventually translate into greater product availability and potentially lower prices, although the final impact will depend on import costs, distribution margins, exchange rates and competition.
$20 Billion Investment Commitment
The trade agreement also includes a commitment from New Zealand to facilitate $20 billion in investment into India over the coming years.
The investment component is aimed at supporting areas such as businesses, employment generation, MSMEs and women-led enterprises, adding an investment dimension to the bilateral trade relationship.
What the Deal Means for Businesses
For Indian companies, the agreement could provide greater access to the New Zealand market without the tariff disadvantage faced under the earlier trade framework.
Export-oriented businesses may see opportunities to expand sales, while MSMEs and manufacturers could use the lower trade barriers to explore new customers and supply relationships.
At the same time, Indian businesses operating in sectors exposed to imports from New Zealand may face greater competition once the tariff concessions take effect.
India-New Zealand Trade Deal: Key Points
- Agreement: India-New Zealand Free Trade Agreement
- Signed: April 27, 2026
- Expected implementation: Late October 2026
- Indian exports: 100% duty-free access to New Zealand
- New Zealand exports: Tariff concessions covering around 95% of exports to India
- Investment commitment: $20 billion from New Zealand
- Sensitive sectors: Several areas, including dairy, remain protected
The India-New Zealand FTA marks another step in India’s expansion of trade partnerships with developed economies. Its impact will become clearer once the agreement enters into force and businesses begin using the new tariff provisions.
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