The Free Trade Agreement or FTA between India and New Zealand is expected to come into effect from October 19. An official gave this information on September 15. Both the countries had signed this agreement on 27 April. Its objective is to increase trade in goods and services and promote investment. Under this agreement, New Zealand has also said that 100% of India’s exports will be tax free. This means that New Zealand will not charge any import duty on goods reaching New Zealand from India. Both countries have also agreed to promote investment of $20 billion in India in 15 years. Under the agreement, New Zealand is expected to invest $20 billion i.e. about ₹1.9 lakh crore in India in the next 15 years. Indian products benefit from the agreement. Currently, New Zealand imposes a maximum duty of up to 10% on major Indian products. These include ceramics, carpets, automobiles and auto components. After implementation of FTA, all Indian exports including these products will get tax free access to New Zealand. 5 thousand Indian professionals will get working visa. In the service sector, India has achieved market access in high-value sectors like IT, education, financial services, construction and tourism. Under the agreement, avenues will also be opened for AYUSH, Yoga Instructors, Indian Chef and Music Teachers. A new temporary employment entry visa pathway has been created in the FTA. Under this, every year 5,000 Indian skilled professionals will be able to work in New Zealand for 3 years. There will be special opportunities in engineering, healthcare and education sectors. Apart from this, Indian wines and spirits will also get duty free access to the New Zealand market. Concession to New Zealand on agricultural products, no exemption on dairy. In the agreement, India has opened 70% of its tariff lines to give New Zealand access to the Indian market. In this, tariff concessions have been given on agricultural products like apple, kiwifruit and Manuka honey, but these will be subject to quota limits and minimum import prices. Apart from this, New Zealand will immediately get zero duty on more than 54% of its exports to India. This includes sheep meat, wool, coal and forestry products. Tariffs on seafood, iron, steel and aluminum scrap will be phased out over the next 10 years. However, to protect its domestic interests, India has kept sensitive sectors like dairy products (milk, cream, cheese etc.), onion, pulses, sugar, arms-ammunition and some metals out of the list of concessions. Discussion started in 2010, talk was made in 2025. Talks for trade agreement between India and New Zealand started in 2010. It was stopped in 2015 after 9 rounds of discussion. The process was then restarted in March 2025 and the successful completion of negotiations was announced on 22 December 2025. There are a total of 20 chapters in this pact, which include important issues like goods, services, rules of origin, technical barriers and custom processes. What is FTA? Free Trade Agreement i.e. Free Trade Agreement is a trade agreement between two countries, in which duties (tariffs) and other trade barriers on import-export are reduced or eliminated. Its objective is to increase trade, attract investment and strengthen the economy of both the countries.
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India-New Zealand trade agreement expected to be implemented from October 19: No duty on Indian exports, New Zealand will invest 20 billion dollars in 15 years
