“Almost exactly three years ago, I committed that National would secure a free trade deal with India within our first term if elected. And today, we finalised the deal, which comes into force next month,” New Zealand Prime Minister Christopher Luxon said in a post on X.
Commerce minister Piyush Goyal announced the date of implementation of the trade pact, saying that the India-New Zealand FTA comes into force on October 20.
“It is exciting to think of how many businesses will grow as a result of this FTA, and then consider what that means for them, for the people who work for them, and for the country as a whole. It means more opportunities for exporters, stronger growth for businesses, and more jobs and higher incomes for New Zealand,” Luxon added.
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Goyal added that the two nations aim to double goods and services bilateral trade by 2030, to Rs 350 billion.
New Zealand Parliament cleared the agreement on September 16, with lawmakers voting 93-29 in favour of the legislation, bringing the bilateral trade pact closer to implementation.The prime minister had said that the pact would provide greater access to India’s consumer market and support economic growth in New Zealand.
“People told me a Free Trade Agreement with India wasn’t possible. Well, today that deal passed its final vote in Parliament. It’s happening. National said we said we’d secure a Free Trade Agreement with India in our first term, and we’ve delivered. This landmark deal means more jobs, higher incomes for Kiwis. It means more New Zealand products being sold in India by opening the door to 1.4 billion Indian consumers. It’s one of the ways we will grow the economy to help you get ahead – fixing the basics and building the future,” Luxon said in his post.
The FTA was signed by India and New Zealand on April 27 this year.
Earlier this month, Commerce Secretary Rajesh Agrawal said that the deal could potentially become operational in October.
Under the agreement, New Zealand will provide duty-free market access for 100% of Indian exports, covering all tariff lines. The pact is expected to enhance the competitiveness of India’s labour-intensive sectors and support employment across areas such as textiles and apparel, leather and footwear, gems and jewellery, engineering goods and processed food.
The agreement also includes a commitment by New Zealand to invest USD 20 billion in India over a period of 15 years, aimed at deepening long-term economic and investment ties between the two countries.
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For New Zealand’s exports to India, the agreement provides market access across 70.03% of tariff lines, covering 95% of bilateral trade. India has excluded 29.97% of tariff lines from concessions, including sensitive products such as dairy, several agricultural commodities, sugar, certain metals and other goods.
Duties on 30% of tariff lines, covering products including wood, wool, sheep meat and raw hides, will be eliminated immediately. Another 35.60% of tariffs will be phased out over periods ranging from three to 10 years.
Certain products, including wine, pharmaceutical drugs, polymers and specified aluminium, iron and steel products, will benefit from tariff reductions. A limited number of products, including Mānuka honey, apples, kiwifruit and albumins, will be subject to tariff-rate quotas.
The agreement also provides for greater agricultural cooperation, particularly in sectors such as kiwifruit, apples and honey. The two countries will collaborate on areas including planting material, research, technical assistance, orchard management, post-harvest practices, supply-chain development and food safety.
In services, New Zealand has made commitments across 118 sectors and provided Most-Favoured Nation treatment across 139 sectors, according to the official release.
The pact also expands mobility opportunities for Indian students and professionals. It introduces a Temporary Employment Entry visa pathway with an annual quota of 5,000 skilled Indian workers, allowing stays of up to three years. The arrangement covers occupations such as AYUSH practitioners, yoga instructors, Indian chefs and music teachers, along with professionals in IT, engineering, healthcare, education and construction.
Under a separate Working Holiday Visa arrangement, up to 1,000 young Indians each year will be able to travel to New Zealand and stay for up to 12 months.
The agreement also contains provisions on student mobility and post-study work. Eligible Indian students will be permitted to work up to 20 hours a week while studying and may qualify for extended post-study work visas based on their qualifications.
Beyond trade and mobility, the FTA provides for cooperation in investment, research and innovation, technology, skills development, renewable energy, digital services and infrastructure.
Following its finalisation and parliamentary approval in New Zealand, the agreement will now move towards implementation. It covers a broad range of areas, including trade in goods and services, investment, agriculture, mobility and customs procedures.