India-New Zealand FTA to come into force on October 20; 100% of Indian exports to get zero-duty access

The India-New Zealand Free Trade Agreement (FTA) will enter into force on October 20, marking the execution of a trade pact focused on broadening bilateral commerce, enhancing financial investments and enhancing financial ties in between the 2 nations.

Commerce Secretary Rajesh Agarwal stated it is the seventh trade arrangement to get operationalised in previous 5 years.Under the contract, 100% of India’s exports will get zero-duty market gain access to in New Zealand. New Zealand has actually likewise dedicated to helping with financial investments worth $20 billion into India over the next 15 years.The arrangement offers a Temporary Employment Entry Visa path for experienced Indian specialists, with a quota of 5,000 visas and an allowed stay of approximately 3 years.Both nations intend to double bilateral trade over the next 5 years. The India Trade Promotion Organisation (ITPO) will likewise open a workplace in New Zealand to promote trade in between the 2 nations.India has actually kept defenses for delicate sectors, without any tariff concessions for dairy items, onions, almonds, sugar and comparable classifications. New Zealand has actually likewise ensured assistance for Indian farmers through a farming performance collaboration.India and New Zealand concluded settlements for the FTA in December 2025 and signed the arrangement in April 2026.With the pact entering into force, India will have trade contracts with all members of the Regional Comprehensive Economic Partnership (RCEP) organizing other than China.India’s bilateral product trade with New Zealand stood at $1.3 billion in the fiscal year 2024-25, up 49% year-on-year.What New Zealand getsUnder the FTA, India will liberalise tariffs throughout 70% of its tariff lines for imports from New Zealand, covering 95% of bilateral trade.New Zealand apples will be enabled into India at a 25% import task, based on quotas. The quota will increase from 35,000 metric tonnes in the 2nd year of execution to 45,000 metric tonnes from the 6th year.Kiwi fruit priced above $1.80 per kg will receive zero-duty gain access to, with the quota increasing from 8,000 metric tonnes in the 2nd year to 15,000 metric tonnes from the 6th year.Albumin exports from New Zealand will draw in an 11% task, with the quota increasing from 1,500 metric tonnes in the 2nd year to 3,000 metric tonnes from the 5th year.For New Zealand-certified Manuka honey, India has actually set a minimum import rate of $30 per kg. The quota will be 40 metric tonnes in the very first year and boost to 200 metric tonnes from the 2nd year.The import quota window for apples will range from April 1 to August 31, while kiwi imports will be allowed under the quota from April 1 to October 15. Albumin and Manuka honey will have year-round import windows.