The free trade agreement between India and New Zealand has come into force, reported on 20 October. It was signed on 27 April 2026, and New Zealand’s Parliament passed the implementing legislation on 16 September. The Global Trade Research Initiative called it India’s 17th operational trade agreement.
Under the deal, New Zealand eliminates tariffs on all tariff lines for Indian goods, which will help textiles, garments, leather, carpets, ceramics, engineering goods and auto components. The immediate gain is smaller than it sounds, because 58.3 percent of New Zealand’s tariff lines were already duty-free, according to Deccan Chronicle.
India’s concessions are narrower. It opens about 70 percent of its tariff lines, covering nearly 95 percent of New Zealand’s exports, including wool, wood, coal and wine, according to the same report. Dairy, sugar and edible oils are excluded, and another account lists onions, chana, peas, corn and almonds among the protected items. Apples face a duty cut from 50 percent to 25 percent within a quota of 32,500 tonnes, rising to 45,000 tonnes from the sixth year. Access is limited to April through August, with a minimum import price of 1.25 dollars per kilogram. A bilateral safeguard mechanism stays available for 14 years.
The agreement also covers people and investment. New Zealand has set an aspirational target of 20 billion dollars of investment over 15 years, a large figure against its total investment in India of under 1 billion dollars in 25 years. A work-and-holiday scheme will admit 1,000 young Indians a year, and a temporary employment pathway allows up to 5,000 skilled professionals at any time for up to three years. Indian students may work 20 hours a week, and post-study work visas run three years for STEM bachelor’s and master’s graduates, four for doctorates.
Trade volumes are modest. Goods trade was about 1.23 billion dollars in 2025, with Indian exports of 651.8 million dollars. The agreement’s value lies in precedent and in the access it gives Indian exporters to a high-income market.