New Delhi, October 20 — The India–New Zealand Free Trade Agreement (FTA) entered into force on Tuesday, October 20, 2026, with New Zealand eliminating customs duties on 100% of tariff lines covering Indian exports and removing peak tariffs of up to 10%, according to the Press Information Bureau's official release. The duty-free access covers textiles, apparel, leather, footwear, gems and jewellery, engineering goods, automobiles and components, chemicals, pharmaceuticals and processed agricultural products, while regulatory clearances for pharmaceuticals and medical devices have been streamlined.

India, in turn, has offered tariff concessions on 70% of its tariff lines, covering about 95% of the current bilateral trade value, with 29.97% of lines excluded from concessions. Sensitive farm imports such as apples, kiwifruit, manuka honey and albumins will be governed by duty-based quotas and minimum-import-price safeguards, and India's sensitive sectors, including dairy, remain protected from import competition.

New Zealand has committed to facilitate $20 billion — yaani 20 arab dollars — in investment into India across infrastructure, manufacturing, start-ups and agriculture. The pact targets expanding bilateral trade to NZ$7 billion (about Rs 35,000 crore) by 2030.

The agreement closes a fast negotiating track: talks commenced on March 16, 2025 and concluded on December 22, 2025; the pact was signed on April 27, 2026, and New Zealand ratified it in September 2026 after its Parliament passed the implementing legislation on September 16.

To mark implementation, Commerce and Industry Minister Piyush Goyal flagged off the first-ever export of an Indian-manufactured JCB machine to New Zealand, following a joint virtual conference on October 19 between Goyal and New Zealand Trade Minister Todd McClay. 'The India-New Zealand FTA comes into force today! A new chapter of opportunities begins!' Goyal posted on X. New Zealand Prime Minister Christopher Luxon posted on X that Kiwi businesses can now reach over a billion more customers with reduced tariffs. Sources: Press Information Bureau (official release); Commerce Minister Piyush Goyal's statement on X; New Zealand PM Christopher Luxon's statement on X; Angel One's report of the agreement text.