India’s Free Trade Agreement (FTA) with New Zealand is set to strengthen India’s trade diversification strategy by expanding export opportunities, improving market access and deepening bilateral economic ties. The agreement is scheduled to enter into force on October 20, 2026, opening new opportunities for Indian exporters amid changing global trade conditions.
Under the agreement, 100% of Indian exports will receive duty-free access to New Zealand from day one. Key beneficiaries include textiles and apparel, leather and footwear, gems and jewellery, engineering goods, processed foods, ceramics and automobile components. The removal of tariffs of up to 10% on selected Indian products is expected to improve their competitiveness in the New Zealand market.
The agreement is also expected to benefit Indian businesses by providing tariff-free access to selected industrial inputs, including wooden logs, coking coal and metal scrap. These concessions could help manufacturers manage input costs and strengthen their participation in global supply chains.
Beyond merchandise trade, the FTA aims to promote investment, cooperation in technology and greater opportunities for businesses, professionals and students. New Zealand has committed to facilitating US$20 billion in investment into India over 15 years, while both countries have set an aspirational target of doubling bilateral trade in goods and services to NZ$7 billion by 2030.
For India, the agreement represents an opportunity to reduce dependence on traditional export markets, diversify overseas demand and create new avenues for micro, small and medium enterprises (MSMEs). Exporters will need to understand product-specific rules of origin, documentation and other applicable requirements to make effective use of the tariff concessions.
With the agreement taking effect on October 20, India and New Zealand are expected to enter a new phase of trade cooperation, creating opportunities for exporters while strengthening India’s broader strategy of building resilient and diversified international trade partnerships.