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India New Zealand FTA comes into force on Vijayadashami with zero duty on all Indian goods

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The India New Zealand FTA enters into force today, 20 October 2026, on Vijayadashami. Commerce and Industry Minister Piyush Goyal and New Zealand Trade and Investment Minister Todd McClay announced the date at a virtual conference on Monday, PIB said. New Zealand has removed customs duties on every tariff line covering Indian exports, and New Zealand’s Ministry of Foreign Affairs and Trade confirms the agreement is now in force.

India New Zealand FTA: DGFT Chennai officials and exporters at the flag-off of a gems and jewellery consignment bound for New Zealand
DGFT Chennai officials and exporters at the flag-off of a gems and jewellery consignment bound for New Zealand Photo: PIB (Government of India, free to use with credit).

What the India New Zealand FTA changes for Indian exporters

New Zealand has eliminated duties on all Indian tariff lines, removing peak tariffs of up to 10 per cent, the commerce ministry said. Textiles, apparel, leather, footwear, gems and jewellery, engineering goods, automobiles and components, chemicals, pharmaceuticals, farm products and processed foods are expected to gain. Duty-free access for wooden logs, coking coal and metal scrap should help manufacturing supply chains, and drug and medical-device makers get streamlined regulatory processes. Goyal said full duty-free access opens new doors for MSMEs, artisans, farmers and women entrepreneurs. On services, New Zealand has made its best offer in any trade deal so far, with market access in about 118 sectors and most-favoured-nation commitments in about 139 sub-sectors, including, for the first time, dedicated access for Ayurveda, yoga and other AYUSH services.

Key Facts

  • In force: 20 October 2026 (Vijayadashami)
  • Indian goods: zero duty on all New Zealand tariff lines; peak tariffs of up to 10% removed
  • Visas: 5,000 Temporary Employment Entry + 1,000 Working Holiday visas a year
  • Services: market access in about 118 sectors
  • New Zealand exports tariff-free on day one: 57%, rising to 82% over time

“Ours is a winning partnership, both on and off the field.”

— Piyush Goyal, Union Minister of Commerce and Industry

Working Holiday visas, students and the farm partnership

Indian youth and professionals get a yearly quota of 5,000 Temporary Employment Entry visas and 1,000 Working Holiday visas. There is no numerical cap on Indian students, who get post-study work rights of up to three years after STEM bachelor’s and master’s degrees and up to four years after a doctorate. An Agricultural Productivity Partnership adds action plans for kiwifruit, apples and honey, with New Zealand technical help for Centres of Excellence. Phase I kiwifruit sites have been identified at Pfutsero in Nagaland and Magra in Uttarakhand. The PIB release also says New Zealand has committed to facilitate USD 20 billion of investment into India under the agreement.

An agri-food consignment for New Zealand is flagged off at Dandu Malkapur in Telangana
An agri-food consignment for New Zealand is flagged off at Dandu Malkapur in Telangana Photo: PIB (Government of India, free to use with credit).

First flag-offs and what New Zealand gains

Goyal flagged off the first-ever export of a JCB machine from India to New Zealand, and more flag-offs in agriculture, gems and jewellery, engineering, sporting goods, footwear and leather were planned for today. On Monday, DGFT Chennai sent off a gems and jewellery consignment worth Rs 63,78,753 made by Emerald Jewel Industry India Limited, and an agri-food consignment left the TIF-MSME Green Industrial Park in Telangana’s Yadadri Bhuvanagiri district. For New Zealand, McClay said 57 per cent of its exports to India are now tariff-free, including sheep meat, wool and coal, rising to 82 per cent over time, with the next round of cuts due on 1 January 2027, RNZ reported. Wine tariffs of 150 per cent will fall to 25 or 50 per cent over 10 years, he said.

Why It Matters: The deal gives labour-intensive Indian sectors such as textiles, leather and footwear a level playing field in New Zealand and opens work and study routes for young Indians. Both ministers said it will be judged by how much businesses actually use it.

Also on TrendDesh: Diwali Faral abroad: Maharashtra Post pushes 10 kg international parcels for festive sweets · Russia sanctions waiver: Trump holds off Graham Act tariffs, easing pressure on India's Russian oil imports

Source: PIB (Ministry of Commerce and Industry), 19 Oct 2026 · PIB Chennai: DGFT gems and jewellery consignment · PIB Hyderabad: Telangana agri-food consignment · New Zealand MFAT: NZ-India FTA in force · RNZ: NZ-India FTA officially begins

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