India–New Zealand FTA to Come into Force on Vijayadashmi; How New Opportunities Will Open for Indian Exporters
New Delhi: Beginning October 20, with the implementation of the India-New Zealand Free Trade Agreement (FTA), Indian exporters will gain duty-free access to the New Zealand market. Announced by Commerce Minister Piyush Goyal and New Zealand Trade Minister Todd McClay, this agreement is expected to make Indian products more competitive and open up new opportunities for businesses—particularly Micro, Small, and Medium Enterprises (MSMEs).
New Zealand has eliminated customs duties on all tariff lines applicable to Indian exports, effectively removing tariffs that previously reached as high as 10%. This means Indian products can enter the market without these import levies, potentially lowering costs for buyers and making Indian goods more attractive.
Sectors such as textiles, apparel, leather goods, footwear, gems and jewellery, engineering products, automobiles, auto components, chemicals, pharmaceuticals, agricultural produce, and processed foods are expected to benefit. Furthermore, streamlined customs procedures and simplified regulations will provide additional support to exporters.
Small businesses, women-led enterprises, artisans, startups may now have the opportunity to reach new customers without incurring additional import duties. However, to claim these benefits, exporters must comply with the agreement’s 'Rules of Origin' and other stipulated conditions.
The agreement also grants Indian service providers access to approximately 118 sectors in New Zealand, including opportunities in areas such as traditional medicine, Ayurveda, and yoga. Beyond trade, New Zealand has pledged to help attract $20 billion in investment to India, which could boost manufacturing, agriculture, infrastructure, and employment.
The agreement also shields sensitive Indian sectors—such as dairy, sugar, and edible oils—from tariff concessions. Both nations aim to double their bilateral trade in goods and services to NZ$7 billion by 2030.