In FY26, India-New Zealand bilateral trade in goods was at $1.15 million, with exports at $566.51 billion and imports at $589.10 million.

The India-New Zealand FTA will be implemented on October 20, paving the way for duty-free exports of 100 per cent of Indian goods, including labour-intensive items such as textiles, carpets, chemicals, gems and jewellery, pharmaceuticals, auto and auto components and machinery. This move has the potential to double bilateral trade in goods and services to Rs 35,000 crore (about $4 billion) in four-five years, Commerce Minister Piyush Goyal said.

“New Zealand has furthermore committed to investing $20 billion in India as Foreign Direct Investment under the FTA. This will provide our manufacturing sectors with both capital and technology, while also attracting New Zealand companies to invest in India…,” Goyal said at a media briefing on Monday.

Wider access

The agreement, signed on April 27, assumes significance amid heightened geopolitical uncertainty and US President Donald Trump’s increasingly unpredictable tariff policy, as New Delhi seeks to expand market access for Indian exporters and diversify its trade partnerships.

For New Zealand, as much as 95 per cent of its exports to India, including apples, kiwis, wool and sheep meat, will get greater market access. On the first day of implementation, 57 per cent of New Zealand exports, including sheep meat, wool, several wood products and coal, will become completely tariff-free, with the share eventually rising to 82 per cent.

For India’s services sector, the pact opens up access to New Zealand across around 118 sectors, including IT, professional services, construction, tourism and audio-visual services, per a government statement. It also provides mobility opportunities through 5,000 skilled-worker visas and 1,000 working-holiday visas annually, along with post-study work rights of up to four years for Indian students.

New Zealand Trade and Investment Minister Todd McClay, who remotely participated in the media briefing, said both countries could be proud of a “highest-quality FTA with mutual economic benefits”.

Sensitive sectors

Goyal noted the removal of tariffs, which were as high as 10 per cent for some items, would eliminate the disadvantage faced by Indian exporters vis-à-vis countries that already had a foothold in the New Zealand market.  

India has not granted any market access concessions in sensitive sectors, specifically dairy, Goyal said. “The same applies to various agricultural products—such as onions, chickpeas, peas, maize, almonds, artificial honey, and sugar,” he noted.

Engineering exporters expect the agreement to provide significant opportunities. Pankaj Chadha, Chairman, EEPC India, said the pact would provide zero-duty access for Indian engineering goods and help exporters diversify in the New Zealand market.

“With the trade agreement coming into force next month, we can certainly target the doubling of engineering exports in the next five years to $280-300 million,” Chadha said.

The India–New Zealand FTA will give fresh momentum to Indian exports through greater market access and diversification, creating significant new opportunities for our exporters, particularly MSMEs, in the Indo-Pacific market, noted Ajay Sahai from Federation of Indian Export Organistions.

In FY26, India-New Zealand bilateral trade in goods was at $1.15 million, with exports at $566.51 billion and imports at $589.10 million. Total bilateral trade in goods and services was at around $2.29 billion.

Published on September 21, 2026