The India‑New Zealand Free Trade Agreement, effective from Tuesday, eliminates tariffs on every Indian export, slashing peak duties that once reached 10%.
Under the pact, textiles, leather, automotive parts, pharmaceuticals, and agri‑products now enter New Zealand duty‑free, giving Indian exporters a competitive edge against other FTA partners. The agreement also preserves safeguards for dairy, sugar, and edible oil, ensuring protection for sensitive domestic industries.
Small and medium enterprises, especially women‑led and start‑ups, will see lowered landed costs and faster customs clearance, expanding their customer base in the Kiwi market. New Zealand will also register Indian geographical indications, safeguarding rural artisans and traditional products.
The Agricultural Productivity Partnership will deploy tech and training hubs for kiwifruit, apples, and Mānuka honey, with centres slated for Nagaland, Uttarakhand, Himachal Pradesh, and West Bengal. Tariff‑rate quotas for these crops will be linked to action plans overseen by a Joint Agriculture Productivity Council.
New Zealand opens 118 services sectors, including Ayurveda and yoga, and will issue up to 5,000 temporary work visas and 1,000 working‑holiday visas annually for Indian talent. Indian students will enjoy no cap on admissions and extended post‑study work rights of up to four years for doctoral scholars.
The agreement also promises $20 billion of investment over 15 years, targeting agriculture, manufacturing, infrastructure and start‑ups. India’s trade ministry will roll out implementation guidelines next month, while the first cohort of Indian exporters is expected to ship goods by late summer.