India-New Zealand FTA enters into force on 20 October 2026
Why in the news
The India-New Zealand Free Trade Agreement (FTA) came into force on 20 October 2026, the day of Vijayadashami. Commerce and Industry Minister Piyush Goyal marked it at a ceremony in New Delhi, where the first-ever export of a JCB machine from India to New Zealand was flagged off.
Key facts
- Signing: 27 April 2026 at Bharat Mandapam, New Delhi, by Piyush Goyal and New Zealand Trade Minister Todd McClay.
- New Zealand Parliament passed the enabling law on 16 September 2026.
- Duty-free access: New Zealand eliminates tariffs on 100% of Indian exports; its peak tariffs of up to 10% go.
- India’s offer: market access on 70.03% of tariff lines, with 29.97% kept in the exclusion list.
- Investment: New Zealand will facilitate US$20 billion of investment into India over 15 years.
- Trade: bilateral merchandise trade was about US$1.1 billion in 2025-26; the aim is to roughly double goods and services trade to NZ$7 billion (about ₹35,000 crore) by 2030.
- Protected sectors: dairy, sugar, edible oils and animal products other than sheep meat.
Mobility provisions
| Provision | Detail |
|---|---|
| Temporary Employment Entry visa | Quota of 5,000 skilled Indians, stay up to 3 years |
| Working Holiday visa | 1,000 young Indians a year, 12-month stay |
| Students | No cap; post-study work up to 3 years (STEM) and 4 years (doctoral) |
About the agreement
New Zealand apples, kiwifruit and Manuka honey get only calibrated entry into India through tariff rate quotas with minimum import prices. For pharmaceuticals, New Zealand will accept inspection approvals of regulators such as the US FDA and UK MHRA. The Department of Revenue notified revised customs duty rates under Section 25(1) of the Customs Act, 1962, to apply the FTA.
Exam angle
- Entry into force: 20 October 2026; signed: 27 April 2026.
- NZ investment pledge: US$20 billion over 15 years.
- Dairy is the key sector India kept out of the deal.