India-New Zealand FTA: Zero Tariffs on All Indian Exports from Oct 20
India-New Zealand FTA kicks in on October 20, eliminating tariffs on 100% of Indian export lines to boost textiles, pharma, and agriculture.
In a major boost for Indian exporters, the India-New Zealand Free Trade Agreement (FTA) is set to come into effect on October 20. The landmark deal will completely eliminate tariffs on 100% of Indian export lines, granting unprecedented market access to a wide array of Indian industries.
A Massive Win for Labour-Intensive Sectors
Speaking to ANI in Hyderabad, Sampath Kumar, Additional Director General of Foreign Trade (DGFT), highlighted that the agreement is a game-changer for sectors that employ a large workforce. Until now, Indian goods faced import duties of up to 10 per cent in the New Zealand market.
Starting tomorrow, these barriers will vanish for several key industries:
- Textiles, Clothing, Leather, and Footwear: Tariffs that previously reached up to 10% will be reduced to zero.
- Pharmaceuticals, Agriculture, and Marine Products: Duties of up to 5% will be eliminated.
- Plastics, Chemicals, and Electrical Goods: Existing tariffs of up to 5% will also be removed.
By slashing import costs, the FTA is expected to make Indian products significantly more competitive, allowing exporters—especially small businesses—to expand their footprint in New Zealand.
Strengthening Trade Ties and Surplus
The DGFT official expressed strong confidence that this move would not only enhance bilateral ties but also increase India's trade surplus. The agreement is designed to open new doors for investment and strengthen the economic bond between the two nations.
The momentum is already visible in the numbers. According to the Ministry of Commerce and Industry, bilateral merchandise trade between India and New Zealand hit USD 1.3 billion in 2024-25, marking a staggering 49 per cent increase compared to the previous financial year. During this period, India's exports to New Zealand were valued at USD 711 million.
The Details of the Deal
The agreement was officially signed on April 27, 2026, in New Delhi by Union Commerce and Industry Minister Piyush Goyal and New Zealand's Minister for Trade and Investment, Todd McClay.
The Reciprocal Arrangement
While the deal is a windfall for Indian exporters, the tariff elimination is structured differently for both nations:
- New Zealand: Will eliminate tariffs on all its tariff lines from the very first day of implementation.
- India: Has offered tariff liberalisation on approximately 70 per cent of its tariff lines. India has strategically retained protections for sensitive sectors, most notably dairy and specific agricultural products.
With the implementation starting October 20, Indian businesses are now poised to leverage this zero-tariff regime to scale their operations in the Oceania region.