The agreement, signed on April 27, aims to boost bilateral trade and investment by expanding market access and strengthening economic ties between the two countries.
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“We are taking forward the next important milestone in our bilateral economic partnership, the entry into force of the India-New Zealand Free Trade Agreement, which will come into force on the auspicious occasion of Dussehra on 20th of October, 2026, reflecting our shared commitment to build a stronger and a more ambitious economic partnership with New Zealand,” Goyal said.
The pact will eliminate New Zealand’s peak tariffs of up to 10% on key Indian exports, including textiles and apparel, leather and footwear, gems and jewellery, engineering goods, processed foods, ceramics, carpets, automobiles and auto components.
Indian manufacturers will also get tariff-free access to inputs such as wooden logs, coking coal and metal scrap.
Sensitive sectors excluded
Goyal said the agreement excludes sensitive sectors such as dairy, onions, chickpeas, peas, corn, almonds, artificial honey and sugar.Also Read: India studying details of US tariffs on Russian oil buyers: Piyush Goyal
The pact also establishes an agricultural productivity partnership, bringing together New Zealand’s technology and India’s scale and growing demand.
For New Zealand, the agreement will provide preferential access to India’s large and fast-growing economy. New Zealand has committed to invest $20 billion in India over 15 years.
“The USD 20 billion FDI commitment “will give capital to many of our manufacturing sectors, along with technology”, Goyal said, adding that New Zealand companies will also be attracted to India to invest.
Goyal said the government was considering setting up a dedicated desk to promote investments from New Zealand.
“We are looking at a specific desk which will look into the India-New Zealand partnership.”
Trade target of NZ$7 billion by 2030
Both countries are aiming to double bilateral trade in goods and services to NZ$7 billion, or about Rs 35,000 crore, by 2030. Bilateral trade stood at $1.1 billion in 2025-26.
“Looking forward, our immediate priority should be to ensure that the provisions of the agreement immediately translate into tangible benefits for businesses and people of India and New Zealand…Together, let’s ensure that this FTA becomes a strong foundation for a deeper, more dynamic and mutually beneficial economic partnership between our two countries,” Goyal said.
New Zealand Trade Minister Todd McClay described the agreement as a high-quality pact that would benefit citizens of both countries. He said it would also provide confidence to businesses amid global economic uncertainties.
Goyal said duty-free access would give Indian goods an edge over products from competitor countries in the New Zealand market.