India-New Zealand FTA to come into force on October 20: Union Minister Piyush Goyal

The India-New Zealand Free Trade Agreement will commence on October 20, 2026, according to Commerce and Industry Minister Piyush Goyal. The agreement will grant Indian exporters duty-free access to New Zealand's market, which encompasses 100% of India's exports. This development is expected to lead to investments worth $20 billion over the next 15 years, benefiting numerous manufacturing sectors and attracting foreign investment to India.

Signed on April 27, the pact aims to bolster bilateral trade and investment by expanding market access and fortifying economic ties between India and New Zealand. Speaking on the occasion, Goyal emphasized that the entry into force of the agreement marked a significant milestone in their bilateral economic partnership. The Dussehra celebrations on October 20, 2026, reflect the shared commitment to a stronger and more ambitious economic partnership with New Zealand.

The agreement eliminates New Zealand's peak tariffs of up to 10% on key Indian exports, including textiles, leather, gems and jewelry, engineering goods, processed foods, ceramics, carpets, automobiles, and auto components. Indian manufacturers will also enjoy tariff-free access to crucial inputs such as wooden logs, coking coal, and metal scrap. Certain sectors, including dairy, onions, chickpeas, peas, corn, almonds, artificial honey, and sugar, are excluded from this arrangement.

Goyal stated that the pact excludes sensitive sectors to safeguard specific interests. However, the agreement establishes an agricultural productivity partnership, combining New Zealand's technological expertise with India's scale and growing demand. For New Zealand, the agreement will grant preferential access to India's vast and expanding market, with the country committing to invest $20 billion in India over the next 15 years.

Goyal highlighted the significance of the $20 billion foreign direct investment (FDI) commitment, which will provide capital to various Indian manufacturing sectors and foster technological advancements. He also mentioned that New Zealand companies would be enticed to invest in India, further strengthening their economic relationship.

Both countries aspire to double bilateral trade in goods and services to NZ$7 billion (approximately Rs 35,000 crore) by 2030. As of 2025-26, bilateral trade was valued at $1.1 billion. Goyal stated that it is crucial to translate the provisions of the agreement into tangible benefits for businesses and citizens of both nations promptly.

New Zealand Trade Minister Todd McClay praised the pact as a high-quality agreement that would benefit citizens of both countries. He emphasized that it would provide confidence to businesses amid global economic uncertainties. Goyal concluded by expressing optimism about the pact's potential to establish a strong foundation for a deeper, more dynamic, and mutually beneficial economic partnership between India and New Zealand.