Archive · 21 Sep 2026
India-New Zealand FTA Sets October Trade, Investment and Mobility Terms
India and New Zealand have agreed to a trade deal called a Free Trade Agreement.
It is designed to make it easier for businesses in both countries to sell goods and services.
New Zealand will remove import taxes on all Indian exports.
India will also reduce taxes on many New Zealand products, but it will protect items such as dairy, sugar and some farm goods.
New Zealand plans to support up to $20 billion in investment in India over 15 years.
The agreement also gives some Indian workers, students and young travelers more opportunities in New Zealand.
The countries want to double their trade in the next few years.
The reports disagree about when the agreement takes effect, with most specifying October 20, 2026, while another describes it as taking effect in September and also quotes a later date.
The agreement is reported to take effect on October 20, 2026, though one report says it began on September 21 and also quotes a later start date.
New Zealand will grant duty-free access across 100% of tariff lines for Indian exports.
India has offered access on about 70.03% of tariff lines covering 95% of bilateral trade, while excluding sensitive sectors.
New Zealand has committed to facilitate up to $20 billion in investment in India over 15 years.
The pact creates mobility pathways including 5,000 temporary employment places and 1,000 annual working-holiday visas for Indians.
- Who
- The governments of India and New Zealand, including Commerce and Industry Minister Piyush Goyal and New Zealand Prime Minister Christopher Luxon.
- What
- A bilateral Free Trade Agreement covering goods, services, investment, agriculture, customs procedures and mobility.
- When
- The agreement was signed on April 27, 2026. Most reports say it takes effect on October 20, 2026, while one report says it came into force on September 21 and also quotes a later start date.
- Where
- Between India and New Zealand, affecting trade, investment and mobility in both countries.
- Why
- To expand market access, support investment and jobs, improve workforce mobility and help double bilateral trade.
Trade Expansion Benefits
Protections and Constraints
Market access
Trade Expansion Benefits
Supporters say duty-free access for all Indian exports could improve competitiveness in textiles, apparel, leather, footwear, engineering goods, gems and jewellery, and processed foods.
Protections and Constraints
India has excluded about 30% of tariff lines, protecting sensitive sectors such as dairy, sugar, several agricultural products, edible oils, spices, onions, rubber and certain metals.
Investment and employment
Trade Expansion Benefits
The agreement is intended to support investment, manufacturing, infrastructure, services, innovation, employment and higher incomes in both countries.
Protections and Constraints
The $20 billion figure is a commitment to facilitate investment over 15 years, not an immediate investment transfer, and the worker-mobility pathways have defined quotas.
- Agreement signed
- India and New Zealand signed the FTA on April 27, 2026, after concluding negotiations in December 2025.
- Bilateral trade
- Merchandise trade totaled $1.3 billion in India’s FY2024–25.
- Indian export access
- New Zealand will provide duty-free access for 100% of Indian exports across all tariff lines.
- Indian tariff offer
- India offered market access on about 70.03% of tariff lines, covering 95% of bilateral trade.
- Investment commitment
- New Zealand committed to facilitate up to $20 billion in investment into India over 15 years.
- Employment pathway
- A Temporary Employment Entry pathway provides 5,000 places for skilled Indians, with stays of up to three years.
- Working-holiday visas
- Up to 1,000 young Indians each year can travel to New Zealand for stays of up to 12 months.
Sources
India-New Zealand FTA to come into force on October 20: What the trade deal means for businesses
India-New Zealand Free Trade Agreementto take effect on October 20, Piyush Goyal says - Telegraph India
India-New Zealand FTA Comes Into Force, Opens Duty-Free Export Access And $20 Billion Investment Path
