NZ to invest $20bn in Indian agriculture, manufacturing, start-ups sectors
As the India-NZ FTA enters into force from 20 Oct 2026, Indian companies and professionals are set to get access to the New Zealand market and expand their international footprint spanning roughly 118 sectors including IT, professional services, audio-visual, construction and tourism, with Most-Favoured Nation treatment locked in across about 139 sub-sectors.
The latest FTA will also create mobility opportunity through a dedicated quota of 5,000 Temporary Employment Entry visas for skilled Indians and 1,000 Working Holiday visas each year for young Indians. Furthermore, the agreement provides uncapped student mobility with post-study work rights of up to three years for STEM graduates and four years for doctoral scholars, the Ministry of Commerce and Industry said on 21 Sept.
India’s pharmaceutical and medical device exporters are also to gain a long-awaited edge in market entry as New Zealand begins accepting inspection approvals from globally trusted regulators such as the US FDA, EMA, UK MHRA and Health Canada, cutting long waiting time and speeding up market entry.
The FTA also sets the stage for deeper investment gains for India, with New Zealand’s commitment to facilitate US$20 billion in investment into India. This investment by New Zealand will benefit Indian agriculture, manufacturing, infrastructure and start-ups.
Minister of Commerce and Industry Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay spoke on 21 Sept via virtual conference and announced the date, 20 Oct, for entering into force of the agreement following the completion of internal processes in both countries.The FTA was signed on 27 April 2026 in New Delhi.
The legislation was passed by the New Zealand Parliament on 16th September, 2026.
The two governments are working double bilateral in goods and services to NZ$7 billion (approximately Rs.35,000 crore) by 2030. Operationalisation of the FTA will serve as a key enabler for translating the ambitions of the Strategic Partnership between the two countries and the target set under the ‘Roadmap 2030’.
Highlighting the significance of the milestone, Goyal said, “The India-New Zealand FTA would provide fresh momentum to the bilateral partnership, create greater synergies between the two economies, enable economies of scale and contribute to enhancing overall competitiveness”.
Emphasising the symbolism of the chosen date, he said, “We have chosen the auspicious day Dussshera- Vijay Dashmi for the entry into force of the India-New Zealand FTA. I am confident that the entry into force will overcome all hurdles that stood between our trade, technology and investment relationship, and will ensure prosperity for people of both sides”.
McClay noted that at a time of uncertainty in trade and rising tariffs, India New Zealand FTA gives confidence. “With hard work, we have delivered one of the highest quality agreements concluded in nine months, which will provide tangible benefits to businesses and stakeholders on both sides.”
He highlighted that the Agreement is a great foundation for both Governments to cooperate in greater areas, be it people-to-people cooperation, culture, sports, business or investment and we will work together to address challenges faced by businesses to create greater employment opportunities on both sides.
From the entry into force, every single tariff line covering 100% of India’s exports to New Zealand becomes duty-free, offering Indian industry a level playing field that puts it on par with New Zealand’s other trading partners.
Sectors that power livelihoods across the country – textiles and apparel, leather and footwear, gems and jewellery, engineering goods and processed foods – stand to gain immediately as New Zealand’s peak tariffs of up to 10% are eliminated.
Indian manufacturers will also benefit from tariff-free access to critical inputs such as wooden logs, coking coal and metal scrap, sharpening their competitive edge in global markets, the Ministry of Commerce and Industry said in a release.
At the same time, the Government has safeguarded the interests of Indian farmers by keeping sensitive products such as dairy, animal meat (except sheep), key agricultural commodities, sugar and edible oils excluded from tariff concessions. A calibrated market access has been structured for New Zealand’s apples, kiwifruit and Manuka honey through Tariff Rate Quotas with Minimum Import Price and seasonal import windows, alongside safeguards to protect domestic farmers.
The Agreement establishes an Agriculture Productivity Partnership to strengthen cooperation in agriculture, with dedicated Action Plans for kiwifruit, apples and honey aimed at improving productivity, quality and farmer incomes in India. Centres of Excellence will be established for orchard management, post-harvest practices, supply chains, food safety and sustainable beekeeping, facilitating the exchange of knowledge, technology and capacity.
A Joint Agriculture Productivity Council will monitor that the market access is complemented by cooperation activities by New Zealand under Agriculture Productivity Partnership.
With bilateral merchandise trade already at around US$1.1 billion in 2025-26, the entry into force of the India-New Zealand FTA is set to give a decisive push to two-way trade, investment and job creation in the years ahead. Anchored in the vision of Viksit Bharat @2047, the Agreement stands as another testament to India’s growing network of partnerships with developed economies – one that places farmers, women, youth, artisans and MSMEs at the very heart of its gains.
Link for India-New Zealand Factsheet https://www.commerce.gov.in/files/2026-04/final_0.pdf
Link for FAQs https://www.commerce.gov.in/files/2026-04/FAQs%20-%20India-New%20Zealand%20FTA.pdf
Link for India New Zealand FTA Signing – https://www.pib.gov.in/PressReleasePage.aspx?PRID=2255914®=3&lang=1
Fiinews.com
