Business News | India-New Zealand FTA Takes Effect October 20, Opens Duty-free Access for Indian Exports
Get latest articles and stories on Business at LatestLY. The India-New Zealand Free Trade Agreement (FTA) will come into force on Tuesday, October 20, providing duty-free access to Indian goods across the New Zealand market and opening up fresh opportunities for exporters, according to a presentation by the Ministry of Commerce and Industry.
New Delhi [India], October 19 (ANI): The India-New Zealand Free Trade Agreement (FTA) will come into force on Tuesday, October 20, providing duty-free access to Indian goods across the New Zealand market and opening up fresh opportunities for exporters, according to a presentation by the Ministry of Commerce and Industry.
The agreement is aimed at strengthening bilateral trade and investment ties, expanding services trade and diversifying India's export markets amid geopolitical uncertainty.
Labour-intensive sectors, including textiles, apparel, leather and footwear, are expected to benefit from the elimination of tariffs of up to 10 per cent from the outset of the agreement. Engineering goods, pharmaceuticals, machinery, chemicals and agricultural products are among the other sectors expected to gain improved market access.
The agreement covers market access across 70 per cent of tariff lines, while India has kept 30 per cent of its tariff lines excluded. Of the tariff lines covered for New Zealand, 30 per cent will see immediate duty elimination, while the remaining lines will be subject to phased reductions over up to 10 years, tariff cuts or tariff-rate quotas.
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Under the India-New Zealand Strategic Partnership Roadmap, both countries have set a target of doubling bilateral trade in goods and services to NZD 7 billion, equivalent to around Rs 35,000 crore, by 2030.
Bilateral trade in goods and services currently stands at USD 2.4 billion. India's services exports to New Zealand increased 13 per cent from USD 561 million to USD 634 million, while Indian goods exports rose 16 per cent over the past four years to USD 566.5 million in 2025-26.
The agreement also seeks to facilitate trade through faster customs clearance, with cargo to be cleared within 48 hours and express and perishable consignments within 24 hours. It provides for digital certification and self-certification of rules of origin for status holders.
In agriculture, the agreement provides calibrated market access for apples, kiwifruit and honey, subject to safeguards, including restricted tariff-rate quotas, minimum import prices and seasonal windows. An agriculture productivity partnership is also planned to improve farm yields and connect producers with global value chains.
The agreement also provides for USD 20 billion investment commitment from New Zealand and opportunities for cooperation in pharmaceuticals, medical devices and services.
The FTA is expected to strengthen economic engagement between the two countries, expand opportunities for Indian businesses and improve supply-chain integration as India seeks to diversify export destinations and tap new markets. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)