The (FTA), which comes into effecr from 20 October, will eliminate all tariffs on Indian exports into New Zealand, which will provide India greater access to markets like textiles, leather, pharmaceuticals and agricultural products, ANI reported on Monday citing a senior Directorate General of Foreign Trade (DGFT) official.
Sampath Kumar, Additional Director General of Foreign Trade, told the news agency that the agreement would remove existing import duties of up to 10 per cent on several Indian products entering the New Zealand market.
“From tomorrow onwards, the India-New Zealand Free Trade Agreement is going to be implemented. So, under this India-New Zealand free trade agreement, the unique feature is that 100% of tariff lines are going to become zero from tomorrow onwards,” he said.
Kumar also highlighted the benefits for labour-intensive industries, saying, “Till now, the maximum tariff on the textile and clothing sector and leather and footwear is up to 10%. From tomorrow onwards, it is going to become zero.”
He also said that tariffs of up to 5 per cent on agricultural and marine products, pharmaceuticals, plastics, chemicals and electrical goods would also be eliminated.
The removal of duties is expected to improve competitiveness of Indian products in New Zealand by reducing their import costs while providing exporters greater opportunities to expand their presence in the New Zealand market.
Kumar expressed confidence that the new would improve India’s trade position with New Zealand.
“With this free trade agreement, the trade surplus is going to be further increased… The ties between India and New Zealand are going to be enhanced,” he said.
As per India’s Ministry of Commerce and Industry, the bilteral merchandise trade between India and New Zealand reached USD 1.3 billion in 2024-25, showing an increasing of 49 per cent year over year. During this period, India’s merchandise exports to New Zealand stood at USD 711 million.
The agreement was signed in New Delhi by Union Commerce and Industry Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay on 27 April 2026.
While New Zealand will eliminate tariffs on all its tariff lines from the first day, India has offered tariff liberalisation on around 70 per cent of its tariff lines, retaining protections for sensitive sectors, including dairy and certain agricultural products.
The agreement is expected to strengthen bilateral trade and investment ties while opening new opportunities for Indian exporters, particularly small businesses and labour-intensive industries.
With ANI inputs