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India-NZ FTA in effect from Vijaya Dashmi (Oct 20): The pact provides a framework to double bilateral trade value from USD 2.4 billion to nearly USD 5 billion in 5 years
Prime Minister Narendra Modi with New Zealand Prime Minister Christopher Luxon (Credits: Reuters)
The India–New Zealand Free Trade Agreement (FTA) establishes a comprehensive economic framework aiming to double bilateral trade to USD 5 billion.
The FTA comes into force from October 20 (Vijayadashmi), Commerce and Industry Minister Piyush Goyal said on Monday. Goyal wrote on X: “A Vijay for both nations. India-New Zealand FTA coming into force on 20th October 2026, on the occasion of Vijay Dashami.”
Here are the highlights:
- The milestone trade agreement officially was signed in April 2026.
- The pact provides a framework to double bilateral trade value from USD 2.4 billion to nearly USD 5 billion within five years.
- 100% Duty-Free for India: New Zealand grants immediate zero-duty access across all of its tariff lines for Indian exports, eliminating its previous peak tariffs of up to 10%.
- India’s Calibrated Openness: India will liberalize approximately 70% of its total tariff lines, covering 95% of New Zealand’s export value over a phased period.
- Core Protections Upheld: To shield Indian farmers and local industries, India successfully excluded sensitive sectors including core dairy (butter and cheese), onions, and specific metals from the tariff cuts.
- Massive Investment Pledge: New Zealand has committed to facilitating USD 20 billion in investments into India over a 15-year window, backed by a performance safeguard clause for accountability.
- Skilled Professional Visas: The agreement creates a dedicated visa pathway introducing an annual quota of 5,000 temporary work visas for skilled Indian professionals.
- Extended Student Mobility: Indian students graduating in New Zealand—particularly in STEM fields—gain smoother academic pathways and extended post-study work visas of 3 to 4 years.
- Breakthrough for AYUSH: In a historic first for a New Zealand trade deal, a specialized framework legally recognizes and promotes trade in India’s Traditional Medicine Systems (Ayurveda and Yoga).
- Streamlined Customs: The deal slashes red tape by requiring customs authorities to clear standard cargo within 48 hours and perishable items within 24 hours.
Almost exactly three years ago, I committed that National would secure a free trade deal with India within our first term if elected.And today, we finalised the deal, which comes into force next month.
It is exciting to think of how many businesses will grow as a result of… pic.twitter.com/WQt04FNHXi
— Christopher Luxon (@chrisluxonmp) September 21, 2026
HOW NZ REACTED
New Zealand Prime Minister Christopher Luxon said on Monday that the FTA had been finalised.
“Almost exactly three years ago, I committed that National would secure a free trade deal with India within our first term if elected. And today, we finalised the deal, which comes into force next month. It is exciting to think of how many businesses will grow as a result of this FTA, and then consider what that means for them, for the people who work for them, and for the country as a whole. It means more opportunities for exporters, stronger growth for businesses, and more jobs and higher incomes for New Zealand,” he wrote on X.
With agency inputs
Quick Answers
Ask News18The India-New Zealand Free Trade Agreement is set to come into force on October 20, 2026, coinciding with Vijayadashmi.
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September 21, 2026, 2:19 PM IST
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