Minister McClay says NZ to benefit from export to India
The India–New Zealand Free Trade Agreement (FTA) came into force on 20 October 2026, the success of which will ultimately be measured by the opportunities it creates and the extent to which businesses from both countries use it, Minister for Trade and Investment, Todd McClay, said in a virtual conference on 19 Oct with Minister of Commerce and Industry Piyush Goyal.
New Zealand has committed to facilitate US$20 billion of investment into India. The investment is expected to benefit agriculture, manufacturing, infrastructure and start-ups, and support innovation, entrepreneurship and employment generation under the Make in India vision.
McClay underlined, “The entry into force of India-New Zealand Free Trade Agreement is a watershed moment in the relationship between our two countries. For New Zealand exporters, the FTA opens the door to 1.4 billion consumers and one of the world’s fastest-growing major economies.
“New Zealand’s current exports to India will benefit from tariff elimination or substantial tariff reductions. At the same time, all Indian goods will be able to enter New Zealand duty-free, creating new opportunities for Indian exporters and placing them on a level playing field with New Zealand’s other FTA partners. The success of this agreement will ultimately be measured by the opportunities it creates and the extent to which our businesses use it.”
Goyal elaborated, “Ours is a winning partnership, both on and off the field. The success of this agreement will be measured by the opportunities it creates and the difference it makes to the lives of the people of New Zealand and India. For India, 100% duty-free access to the New Zealand market opens significant new opportunities for our exporters, particularly MSMEs, artisans, farmers, and women entrepreneurs. For our farmers, the agreement combines new opportunities with appropriate safeguards.
“The Agricultural Productivity Partnership, with action plans for apples, kiwifruit and honey, establishment of Centres of Excellence, promote better orchard management, reduce post-harvest losses, and improve agricultural productivity, supporting stronger farm incomes across the country. The agreement also aligns with the vision of Prime Minister Narendra Modi for Viksit Bharat 2047: that is a developed and prosperous India built on competitiveness, innovation, productive capacity, and inclusive prosperity when India celebrates 100 years of independence.”
Department of Commerce Secretary Rajesh Agrawal added, “FTAs are about creating a deep economic partnership between countries. As a part of the FTA, we see this partnership also driving a lot of New Zealand investment in India. All the other big economies around the Pacific have got a much deeper trade with New Zealand.
“This FTA opens up the opportunity that we can also be a major contributor to the bilateral trade between India and New Zealand. The job is now to translate this opportunity into actual benefits for our people. We are working with all the Industry and the associations to take this message forward to every district across the country.”
Representatives from industries in India and New Zealand also participated in the ceremony and spoke about opportunities created by the Agreement for their respective sectors, including services, footwear, engineering and agriculture, the Ministry of Commerce and Industry said.
On the occasion, the first-ever export of a JCB machine from India to New Zealand was flagged off by the Minister Goyal. Flag-offs of a range of products across the agriculture, gems and jewellery, engineering, sporting goods, footwear and leather sectors were also planned for the entry-into-force day. These initiatives reflect the confidence of Indian manufacturers and the opportunities the Agreement opens up for exporters across the country.
New Zealand has eliminated customs duties on all tariff lines covering Indian exports, removing peak tariffs of up to 10%. Textiles, apparel, leather, footwear, gems and jewellery, engineering goods, automobiles and auto components, chemicals, pharmaceuticals, agricultural products and processed foods are expected to benefit. Duty-free access for wooden logs, coking coal and metal waste and scrap will further strengthen manufacturing and MSME supply chains. The pharmaceutical and medical device industries will benefit from streamlined regulatory processes.
New Zealand has made its best services offer in any of its trade agreements to date, with market access in around 118 sectors and Most-Favoured-Nation commitments in about 139 sub-sectors. For the first time, it has also provided dedicated access in Health and Traditional Medicine Services, covering Ayurveda, Yoga and other AYUSH systems.
Indian youth and professionals will have access to a quota of 5,000 Temporary Employment Entry visas and 1,000 Working Holiday visas every year. There will be no numerical cap on Indian students, with post-study work rights of up to three years for STEM Bachelor’s and Master’s graduates and up to four years for doctoral scholars.
The Agricultural Productivity Partnership is a key component of the Agreement, extending cooperation beyond tariff concessions to bring global technology, training and best practices to Indian farmers. It includes dedicated Action Plans for kiwifruit, apples and honey, with cooperation also extending to horticulture, forestry, livestock and fisheries.
New Zealand is providing technical assistance for establishing Centres of Excellence for kiwifruit, apples and honey. Under the Kiwifruit Action Plan, Phase I sites have been identified at Pfutsero in Nagaland and Magra in Uttarakhand. Two further Centres of Excellence for apples are proposed in Himachal Pradesh and Uttarakhand, while the Honey Action Plan envisages Centres of Excellence in Uttar Pradesh and West Bengal. These initiatives aim to support farmers through technology transfer, improved cultivation practices and enhanced productivity.
Representatives from Himachal Pradesh, Nagaland, Uttarakhand, Uttar Pradesh and Arunachal Pradesh, along with collaborating organisations from New Zealand, were present for the entry into force.
All Tariff Rate Quotas for apples, kiwifruit and Mānuka honey are formally linked to the delivery of the Action Plans, under the oversight of a Joint Agriculture Productivity Council. This links market access with farmer welfare.
To protect farmers, dairy producers, fisherfolk and rural communities, sensitive products such as dairy, sugar, edible oils and key agricultural commodities remain excluded from concessions. Robust Rules of Origin, a bilateral safeguard mechanism and strong anti-circumvention provisions will ensure that the benefits flow only to genuine Indian exporters.
The Agreement opens an advanced overseas market to India’s MSMEs, women-led enterprises, start-ups, artisans and first-generation entrepreneurs. Zero duty and faster customs processes will lower landed costs and widen their customer base. Structured cooperation will provide enhanced access to trade-related information and linkages with New Zealand’s SME ecosystem, with a specific focus on enterprises owned by women and youth.
New Zealand has also committed to facilitate the registration of Indian Geographical Indications, opening avenues for protection of products associated with rural artisans and traditional industries.
Negotiations were launched on 16 March 2025 and concluded on 22 December 2025, within nine months. The Agreement was signed on 27 April 2026. It supports the India–New Zealand Strategic Partnership: Roadmap to 2030, which sets an aspirational goal of doubling bilateral trade in goods and services to NZ$7 billion (Rs.35,000 crore) by 2030.
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
Link for Announcement of date of Entry into force- https://www.pib.gov.in/PressReleaseDetail.aspx?PRID=2313143®=48&lang=1
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