The India-New Zealand Free Trade Agreement will come into force on October 20, giving 100 per cent of Indian exports duty-free access to New Zealand as the two countries seek to double bilateral trade by 2030. Both countries have now formally ratified the agreement.
Indian Commerce and Industry Minister Piyush Goyal confirmed the implementation date Monday. New Zealand Prime Minister Christopher Luxon said the agreement’s entry into force fulfilled his government’s commitment to secure an FTA with India during its first term. The two countries signed the agreement in New Delhi on April 27.
Under the agreement, New Zealand will provide zero-duty access across all tariff lines for Indian exports from the date the deal takes effect. India says the measure will particularly benefit labour-intensive and export-oriented industries including textiles and apparel, leather and footwear, engineering goods, pharmaceuticals, gems and jewellery, handicrafts and agricultural and processed-food products.
India, meanwhile, has offered tariff concessions on 70.03 per cent of its tariff lines, representing about 95 per cent of bilateral trade value. Thirty per cent of tariff lines will see duties eliminated immediately, including products such as wood, wool, sheep meat and raw hides, while additional tariffs will be phased out over several years.
New Zealand says 57 per cent of its exports to India will become tariff-free immediately, with tariffs ultimately eliminated or substantially reduced on 95 per cent of its exports. New Zealand’s Parliament approved implementing legislation for the agreement by a 93-29 vote on September 16.
India has kept nearly 30 per cent of tariff lines outside its concessions to protect sensitive domestic sectors. The exclusions include dairy products such as milk, cream, whey, yoghurt and cheese, along with onions, peas, almonds, sugar and several other agricultural and industrial products.
The agreement also includes a New Zealand commitment aimed at facilitating $20 billion in investment into India over 15 years. Beyond tariffs, the pact covers services, investment, customs procedures, agriculture, technology, skills development and other areas of economic cooperation.
Mobility is another significant component of the agreement, with new pathways for Indian professionals and young people alongside provisions covering education and services. The broader agreement is designed to increase opportunities for businesses and workers while expanding commercial links between the two economies.
The FTA is also central to the wider India-New Zealand Strategic Partnership announced in July. Prime Ministers Narendra Modi and Christopher Luxon have set a goal of doubling two-way trade by 2030, with cooperation extending beyond commerce into investment, technology, education, tourism and maritime security.
With the October 20 implementation date now confirmed, exporters on both sides will begin receiving the first tariff benefits next month, marking the transition of the agreement from negotiation and ratification to implementation.
