India-New Zealand FTA Comes into Force: Zero Duty on All Indian Exports from 20 October
The India-New Zealand Free Trade Agreement (FTA) comes into force on 20 October 2026.
From that day, New Zealand removes import duty (tariff) on 100% of Indian exports. Every Indian product can enter New Zealand without customs duty.
Sectors expected to gain include textiles and garments, leather, pharmaceuticals (medicines), engineering goods and farm products. Zero duty makes these goods cheaper for New Zealand buyers, so Indian exporters can compete better.
India, in turn, opens about 70% of its tariff lines (product categories) to New Zealand, covering about 95% of New Zealand's exports by value. Dairy and other sensitive farm goods are kept out. Apples, kiwifruit and Manuka honey get only limited duty cuts through quotas.
The deal was concluded in December 2025 and signed on 27 April 2026. India's customs department notified the deal's rules of origin on 12 October 2026, effective from 20 October.
The agreement also includes a New Zealand commitment to help bring US$20 billion of investment into India over 15 years, and new visa routes for Indian professionals and young people.
India-New Zealand Relations: From Commonwealth Cousins to Strategic Partners
India and New Zealand are two democracies linked by the Commonwealth, the English common law system and cricket. New Zealand is a small island country in the south-west Pacific Ocean with about 5 million people. For decades the relationship was friendly but thin. Since 2025 it has grown fast through a trade deal, defence ties and a Strategic Partnership agreed in July 2026.
The FTA coming into force is the biggest economic step in this relationship so far. It gives trade, until now the weak pillar, a strong base alongside the defence ties and the 2026 Strategic Partnership.
Free Trade Agreements: Concept and WTO Framework
A Free Trade Agreement (FTA) is a deal between two or more countries to remove or sharply cut import taxes (tariffs) on most of the goods they trade with each other. Each country still keeps its own tariffs for countries outside the deal. World Trade Organization (WTO) rules normally say a country must treat all members equally, but they allow FTAs as an exception if the deal covers "substantially all the trade" between the partners.
The India-New Zealand deal is a classic FTA with an asymmetric design. New Zealand, whose tariffs are already low, opens everything at once. India protects its small dairy farmers and fruit growers through exclusions, phased cuts and quotas.
Rules of Origin (RoO)
Rules of origin are the tests a country uses to decide where a product "comes from". They matter because an FTA's low duty is only for goods that truly come from the partner country. Without them, a third country could send its goods through the partner to avoid the normal tariff (this is called trade deflection). A product qualifies if it is wholly obtained in the partner country (for example, a crop grown there) or if it has been changed enough there (substantial transformation), measured by a change in tariff classification, a minimum share of local value, or a specific process.
Indian exporters will get New Zealand's zero duty only if their goods meet these origin rules and carry valid proof of origin. Firms that use many imported inputs, such as some garment and pharma makers, must check the product-specific rules to be sure they qualify.
- India-New Zealand FTA in force: 20 October 2026 (concluded 22 December 2025; signed 27 April 2026)
- New Zealand: zero duty on 100% of tariff lines for Indian exports from day one
- India: opens 70.03% of tariff lines (about 95% of New Zealand's exports by value); dairy excluded
- New Zealand exports to India duty-free: about 57% on day one, about 82% when fully phased in
- Apples, kiwifruit, Manuka honey: tariff-rate quotas with minimum import price
- Investment commitment: US$20 billion into India over 15 years
- Mobility: up to 5,000 professional visas (up to 3 years); 1,000 working holiday visas a year
- Rules of origin: Notification No. 82/2026-Customs (N.T.), 12 October 2026
- India-New Zealand goods trade: about US$1.3 billion (2024-25)