India's free trade agreement (FTA) with New Zealand will come into force on October 20, bringing a $20 billion investment commitment from New Zealand and zero-duty access for Indian apparel and leather exports.
The two countries have also set a target of doubling bilateral trade in goods and services to around Rs 35,000 crore by 2030.
According to the Commerce Ministry, the agreement is expected to strengthen India's position in the New Zealand market by removing import duties of up to 10% on labour-intensive products, including textiles, apparel, leather and footwear.
The tariff elimination could give Indian manufacturers greater pricing flexibility and help them compete more effectively against suppliers from other countries.
Engineering goods, pharmaceuticals, machinery, chemicals and agricultural products are among the other sectors expected to benefit from improved market access.
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Under the agreement, New Zealand will receive access across 70% of India's tariff lines. India has excluded the remaining 30% to protect sensitive domestic sectors.
Agricultural imports, including apples, kiwifruit and Manuka honey, will receive calibrated access subject to safeguards such as restricted quotas, minimum import prices and seasonal import windows.
The pact also aims to reduce logistical delays through faster customs clearance. Cargo is expected to clear within 48 hours, while express and perishable consignments will have a 24-hour clearance window.
The investment commitment adds another dimension to the trade deal, with opportunities for cooperation across pharmaceuticals, medical devices and services.
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Bilateral trade in goods and services currently stands at around $2.4 billion. India's goods exports to New Zealand reached $566.5 million in 2025-26, up 16% over four years, while services exports rose 13% to $634 million.
The agreement aims to translate lower trade barriers and investment commitments into stronger commercial ties, with the Rs 35,000 crore target setting the benchmark for progress by 2030.
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