India-New Zealand Free Trade Agreement to Come into Effect on October 20; New Horizons for Youth, Women, Farmers and MSMEs as Jobs, Investment and Mobility Get a Boost
India and New Zealand have announced that their Free Trade Agreement (FTA) will officially come into force on October 20, 2026. This marks a significant step towards strengthening economic ties between the two nations. The agreement was signed in New Delhi on April 27, 2026, by Minister of Commerce and Industry, Piyush Goyal, and New Zealand's Minister for Trade and Investment, Todd McClay.
The date was confirmed following the completion of legal procedures by both countries; the New Zealand Parliament had approved the agreement on September 16, 2026.
The FTA is expected to boost trade, investment, and employment opportunities. From the day it comes into effect, 100% of India's exports to New Zealand will become duty-free, benefiting sectors such as textiles, leather, footwear, engineering goods, gems and jewellery, and processed foods. Indian manufacturers will also gain easier access to essential raw materials from New Zealand.
Simultaneously, India has safeguarded the interests of its farmers by excluding sensitive products—such as dairy, sugar, edible oils, and most meat products—from tariff concessions. Imports of apples, kiwifruit, and Manuka honey from New Zealand will be regulated through special quotas and safeguards.
The agreement also aims to attract US$20 billion in investment from New Zealand into India, thereby boosting agriculture, manufacturing, infrastructure, and start-ups.
India's services sector will benefit from enhanced access to the New Zealand market across approximately 118 sectors, including IT, professional services, construction, and tourism. This deal includes provisions for 5,000 temporary work visas and 1,000 working holiday visas for Indians annually, alongside enhanced opportunities for students through extended post-study work rights.
Speaking on the occasion, Piyush Goyal remarked that choosing the day of Dussehra (Vijayadashami) for the launch of the agreement symbolizes the removal of trade barriers and strong economic cooperation. It is expected that this FTA will play a pivotal role in helping both nations achieve the goal of doubling bilateral trade to NZ$7 billion by 2030.