1 month ago
India‑New Zealand FTA to take effect by year‑end, tariffs zero
India and New Zealand are working on a trade deal that will let goods move between the two countries without paying extra taxes.
The deal is almost finished and should start working before the end of 2026.
New Zealand will also help Indian companies invest in New Zealand and vice versa, especially in farming and technology.
They plan to start direct flights soon, so people can travel more easily.
The leaders of both countries have signed many extra agreements to work together on things like clean energy and defense.
FTA expected ratified by end of September 2026, to take effect before year‑end 2026.
New Zealand will reduce tariffs to zero for all Indian goods from day one of the agreement.
Direct flights between India and New Zealand are anticipated within the next couple of years, with Air New Zealand opening offices in India and seeking codeshare with Air India.
The FTA includes a $20 billion investment promotion commitment, targeting sectors like food production, agri‑technology, and horticulture.
Both governments have signed additional cooperation agreements covering critical technologies, clean mobility, semiconductors, and defence, following visits by Prime Ministers Modi and Luxon.
- Who
- New Zealand Trade Minister Todd McClay
- What
- Ratification and implementation of the India–New Zealand Free Trade Agreement
- Where
- Between India and New Zealand
- When
- Expected ratification by end of September 2026, agreement to take effect before end of 2026
- Why
- To boost trade, investment, and people‑to‑people ties with zero tariffs from day one
Key facts
- Agreement
- India–New Zealand Free Trade Agreement
- Expected ratification
- End of September 2026
- Effective date
- Before end of 2026
- Tariff reduction
- Zero for all Indian goods from day one
- Investment promotion
- $20 billion in India
- Direct flights
- Expected within next couple of years
- Additional cooperation
- 20+ agreements on tech, defence, etc.
Quotes
Todd McClay
New Zealand Trade Minister
“We have completed our treaty examination and are now making the legislative changes needed to reduce tariffs to zero for all goods from India into New Zealand on day one, along with implementing the other commitments we have agreed to.”
financialexpress.com
“We’ve made commitments to help raise the earnings of Indian farmers, particularly in kiwifruit, apple production and honey. One idea is to sponsor students to undertake PhDs in New Zealand in areas such as horticultural production.”
financialexpress.com
Sources
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