New Delhi, Oct. 19 -- India's free trade agreement (FTA) with New Zealand will take effect at 12.01 am on October 20, granting Indian exporters zero-duty access across all product categories in the island nation and opening new opportunities for trade, services and skilled professionals. The agreement covers 100 per cent of India's current exports to New Zealand and is expected to help increase bilateral trade in goods
and services to around New Zealand dollar 7 billion, or Rs 35,000 crore, by 2030, from approximately USD 2.4 billion.
Announcing the implementation, Commerce and Industry Minister Piyush Goyal said the pact would benefit sectors such as textiles, apparel, leather, footwear, engineering goods, pharmaceuticals, processed food and marine products. Indian exporters previously faced import duties of up to 10 per cent in New Zealand, a disadvantage that will now be removed. This is India's first FTA to provide complete duty-free access across all tariff lines from the date it comes into force.
Goyal was speaking at the flag-off of a small excavator manufactured by construction equipment maker JCB India for export to New Zealand under the agreement. He said the company currently exports 25 per cent of its total production from India and urged it to increase the share to 50 per cent. New Zealand has become JCB India's 140th export destination, he added.
The agreement also provides New Zealand with greater access to India's 1.4-billion-strong market. India is offering tariff concessions on 70 per cent of its tariff lines, covering about 95 per cent of the value of current bilateral trade. However, sensitive products, including dairy items, onions, pulses, corn, almonds, sugar, edible oils, precious metals, jewellery, copper and aluminium products, remain excluded.
To protect domestic farmers, India has introduced duty-based quotas for apples, kiwifruit, manuka honey and albumins, alongside minimum import price provisions and other safeguards.
New Zealand has agreed to open 118 services sectors and sub-sectors to Indian providers, including information technology, telecommunications, education, financial services, construction and tourism. The pact also creates a temporary employment visa pathway for skilled Indians, with a quota of 5,000 visas at any time for stays of up to three years. Eligible occupations include engineering, healthcare, education, yoga instruction, cooking, music teaching and Ayush practices.
The agreement further provides for intra-company transferees to stay for up to three years, while contractual service providers and independent professionals may remain for up to 12 months. Business visitors and workers installing or servicing equipment can stay for up to 90 days within a 12-month period.
An agriculture productivity partnership will support cooperation on kiwifruit, apples and honey. New Zealand Trade and Investment Minister Todd McClay said 95 per cent of his country's current exports to India would benefit from tariff elimination or substantial reductions once the agreement is fully implemented.
Commerce Secretary Rajesh Agrawal said the priority was to convert the agreement into tangible gains. The pact also provides for customs clearance within 48 hours for cargo and 24 hours for express and perishable consignments.
Bilateral trade fell 11 per cent to USD 1.15 billion in 2025-26 from USD 1.3 billion in the previous fiscal year. India exported goods worth USD 566.51 million and imported USD 589.1 million, leaving a trade deficit of USD 22.59 million.
Published by HT Digital Content Services with permission from Millennium Post.