India-New Zealand FTA comes into force on 20 October 2026
Why in the news
The India-New Zealand Free Trade Agreement (FTA) enters into force on 20 October 2026. Commerce Minister Piyush Goyal and New Zealand Trade Minister Todd McClay announced the date on 22 September 2026, picking Dussehra (Vijayadashami).
Key facts
- Timeline: talks launched in March 2025, concluded in December, and the pact was signed on 27 April 2026 at Bharat Mandapam, New Delhi. New Zealand’s Parliament passed it on 16 September 2026.
- Market access for India: every tariff line, covering 100% of India’s exports, becomes duty-free in New Zealand; NZ peak tariffs of up to 10% are removed.
- India’s offer: concessions on 70% of tariff lines, which cover 95% of New Zealand’s export value to India. Dairy, sugar and edible oils stay protected.
- Investment: New Zealand will facilitate USD 20 billion of investment into India over 15 years.
- Mobility: 5,000 Temporary Employment Entry visas and 1,000 Working Holiday visas a year for Indians, with no cap on student numbers.
- Farm items: kiwifruit, apples and Manuka honey enter India only through tariff-rate quotas with minimum import prices.
| Item | Detail |
|---|---|
| Signed | 27 April 2026 |
| Entry into force | 20 October 2026 |
| Bilateral trade | about USD 1.1-1.2 billion a year |
| Trade target | Double by 2030 |
About the agreement
The FTA is India’s second trade pact in the Oceania region after Australia. Services access spans about 118 sectors, including IT, construction and tourism. Prime Minister Modi visited New Zealand in July 2026, when the two sides announced a Strategic Partnership and a Roadmap to 2030. Indian exports to New Zealand have fallen for two straight financial years, so the deal is seen as a push for trade diversification.
Exam angle
- Remember the dates: signed 27 April 2026, in force 20 October 2026.
- Note the 100% duty-free access for Indian goods and the USD 20 billion investment pledge.
- Dairy remains outside India’s tariff concessions.