India-New Zealand FTA to come into force on October 20, Piyush Goyal says

The India-New Zealand Free Trade Agreement (FTA) is set to enter into force on October 20, 2026, according to Commerce and Industry Minister Piyush Goyal. This pact, signed on April 27, aims to boost bilateral trade and investments between the two countries. Goyal stated that the agreement will provide duty-free access for 100% of India's exports to New Zealand from its entry into force. The pact also facilitates significant investments of USD 20 billion over the next 15 years from New Zealand to India.

Goyal emphasized that this is a "milestone in our bilateral economic partnership" and reflects the shared commitment to build a stronger and more ambitious economic collaboration with New Zealand. The agreement establishes an agricultural productivity partnership, with New Zealand's technology meeting India's scale and growing demand. For New Zealand, the FTA will offer preferential access to the world's second-largest economy, as New Zealand currently maintains high tariffs on certain Indian goods.

Sensitive sectors such as dairy, onions, chickpeas, peas, corn, almonds, artificial honey, and sugar are excluded from the trade deal. New Zealand Trade Minister Todd McClay highlighted the pact as a "high-quality agreement" that will bring significant benefits to both nations, providing confidence to their business communities amidst global economic uncertainties. He added that the USD 20 billion FDI commitment will inject capital into India's manufacturing sectors and attract New Zealand companies to invest in India.

Both countries aim to double bilateral two-way trade in goods and services to NZ dollar 7 billion (approximately ₹35,000 crore) by 2030. As of 2025-26, bilateral trade stood at USD 1.1 billion. Sectors such as textiles and apparel, leather and footwear, gems and jewelry, engineering goods, and processed foods are expected to benefit immediately from the elimination of New Zealand's peak tariffs of up to 10%.