The India-New Zealand Free Trade Agreement (FTA) will come into force on October 20, with Commerce and Industry Minister Piyush Goyal saying the pact will provide duty-free access to all Indian exports to New Zealand and help deepen trade, investment and technology ties between the two countries.
The agreement was signed by Goyal and New Zealand’s Minister for Trade and Investment Todd McClay in New Delhi on April 27, 2026. It is expected to open up opportunities for Indian exporters, farmers, micro, small and medium enterprises (MSMEs) and workers across several sectors.
Speaking at a ceremony marking the agreement’s entry into force, Goyal said India and New Zealand had agreed to work towards doubling bilateral trade in goods and services to NZ$7 billion, or approximately Rs 35,000 crore, by 2030.
“We are looking at an 18% compounded annual growth rate in our bilateral trade, which gives all our businesses significant and ambitious goals to target,” he said.
Goyal said the agreement aligned with Prime Minister Narendra Modi’s vision of Viksit Bharat 2047 and would help create a deeper economic partnership between the two countries.
Under the agreement, all goods exported from India to New Zealand will receive zero-duty access from October 20, Goyal said.
The minister said the benefits would extend across sectors, including labour-intensive industries, and help Indian businesses improve their competitiveness in the New Zealand market.
He also said free trade agreements were not limited to tariff reductions but could help secure faster regulatory approvals, encourage business investments in India and create durable supply chains.
India has been pursuing multiple trade agreements to expand market access for domestic businesses and strengthen its position in global supply chains.
Goyal said the agreement included a commitment to substantial direct investment of approximately Rs 2 lakh crore in India.
He said the pact would benefit farmers, MSMEs, entrepreneurs and workers, while creating opportunities in science, technology and innovation.
A dedicated agricultural partnership has also been established to help raise farm productivity and farmers’ incomes. This includes the creation of Centres of Excellence aimed at improving agricultural practices.
The agreement also provides for greater mobility for Indian students and workers. Goyal said young Indians travelling to New Zealand for education would be granted a guaranteed work visa, allowing them to undergo training and work in the country for a specified period.
Highlighting the opportunities for Indian manufacturing, Goyal said a company such as JCB, which originated in the United Kingdom, was exporting equipment manufactured in India to overseas markets.
At the ceremony, the first consignment of JCB equipment destined for New Zealand was flagged off, he said.
Goyal noted that JCB was exporting equipment made in India to 140 countries, with around 25% of its total production being exported. He said he had set a target for the company to raise the share of its Indian production meant for exports to 50%.
The India-New Zealand FTA is part of India’s broader effort to expand trade partnerships, improve export access and attract investment as businesses look to diversify markets and build more resilient supply chains.