The India-New Zealand Free Trade Agreement (FTA) will take effect on October 20, with Commerce and Industry Minister Piyush Goyal stating that the deal will grant duty-free access to all Indian exports to New Zealand. He said the agreement would strengthen trade, investment and technology cooperation between the two countries.
The pact was signed in New Delhi on April 27, 2026, by Goyal and New Zealand’s Minister for Trade and Investment, Todd McClay. It is expected to create new opportunities for Indian exporters, farmers, micro, small and medium enterprises (MSMEs), and workers across multiple sectors.
Speaking at a ceremony to mark the agreement’s implementation, Goyal said both countries had agreed to work towards doubling bilateral trade in goods and services to NZ$7 billion, equivalent to around Rs 35,000 crore, by 2030.
“We are looking at an 18% compounded annual growth rate in our bilateral trade, which gives all our businesses significant and ambitious goals to target,” he said.
Goyal added that the agreement was aligned with Prime Minister Narendra Modi’s vision of Viksit Bharat 2047 and would help build a stronger economic partnership between India and New Zealand.
INDIAN EXPORTS TO GET ZERO-DUTY ACCESS
Goyal said all goods exported from India to New Zealand would receive duty-free access from October 20.
According to the minister, the benefits would cover a wide range of sectors, including labour-intensive industries, helping Indian companies compete more effectively in the New Zealand market.
He also noted that free trade agreements go beyond reducing tariffs. They can facilitate quicker regulatory approvals, encourage investment in India and help establish reliable, long-term supply chains.
India has been pursuing several trade agreements to expand market access for domestic businesses and strengthen its role in global supply networks.
RS 2 LAKH CRORE INVESTMENT COMMITMENT
Goyal said the agreement included a commitment to facilitate substantial direct investment of approximately Rs 2 lakh crore in India.
He said the deal would create opportunities for farmers, MSMEs, entrepreneurs and workers, while promoting development in science, technology and innovation.
A dedicated agricultural partnership has also been established to improve farm productivity and increase farmers’ incomes. The initiative includes setting up Centres of Excellence to promote better agricultural practices.
The agreement also includes provisions to improve mobility for Indian students and workers. Goyal said young Indians travelling to New Zealand for education would receive a guaranteed work visa, enabling them to undertake training and work in the country for a specified period.
JCB EXPORTS FIRST CONSIGNMENT TO NEW ZEALAND
Emphasising the potential for Indian manufacturing, Goyal pointed to JCB, a company of British origin that exports equipment manufactured in India to international markets.
He said the first consignment of JCB equipment bound for New Zealand was flagged off during the ceremony.
Goyal noted that JCB exports India-made equipment to 140 countries, with exports accounting for approximately 25% of its total production. He added that he had set a target for the company to increase the export share of its Indian production to 50%.
The India-New Zealand FTA forms part of India’s wider strategy to expand trade partnerships, improve export access and attract investment as businesses seek to diversify their markets and establish more resilient supply chains.
