India-New Zealand FTA Comes Into Force, Opens Duty-Free Export Access And $20 Billion Investment Path

The India-New Zealand Free Trade Agreement (FTA) officially came into effect on September 22, 2026, according to Commerce and Industry Minister Piyush Goyal. The agreement offers duty-free access for Indian exports entering New Zealand, and vice versa, while also committing New Zealand to invest $20 billion in India over a 15-year period.

The pact establishes an agricultural productivity partnership aimed at strengthening the bilateral economic relationship between the two countries. New Zealand Prime Minister Christopher Luxon confirmed the deal had been finalized after receiving parliamentary approval earlier in the month, with lawmakers voting 93-29 in favor of the legislation on September 16.

The FTA opens up new trade opportunities, supporting business expansion and contributing to employment growth. Under the agreement, India exempted New Zealand from tariffs on 100% of tariff lines, benefitting sectors such as textiles, leather, gems and jewellery, engineering goods, and processed foods. New Zealand's exports to India will benefit from tariff concessions on products like wine, pharmaceutical drugs, polymers, and specific types of aluminium, iron, and steel.

However, sensitive areas including dairy, some agricultural products, sugar, and certain metals remain outside the agreement. The FTA comes into force next month, fulfilling a pledge made by Luxon almost three years ago that his National party would secure a free trade deal with India within their first term if elected to power.