The agreement, signed in New Delhi on April 27 after nine months of talks, will take effect on the auspicious day of Dussehra, October 20, 2026, Commerce Minister Piyush Goyal said during a virtual session with New Zealand trade minister Todd McClay.
Goyal emphasized that every Indian good will enjoy duty‑free entry into New Zealand. In return, Wellington will slash tariffs on roughly 95% of its exports – including wine, kiwi fruit and apples – a move that will open fresh channels for Indian producers.
The FTA also eases rules for students and workers, and New Zealand has pledged a $20 billion investment in India over the next 15 years. New Zealand High Commissioner Patrick John Rata described the pact as a "huge" development, noting that trust between the two nations underpins the deal.
Trade data shows a 49% jump in bilateral merchandise trade, from $873 million in 2023‑24 to $1.3 billion in 2024‑25. Indian exports to New Zealand rose 32% to $711 million, while services exports grew 13% to $634 million, with travel, IT and business services among the key sectors.
Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon have set a target to double goods and services trade to almost Rs 35 000 crore by 2030, a goal that gains momentum from recent high‑level visits.
On the ground, a New Zealand kiwi farmer, Sarah Thompson, said she expects to ship her fruit to India without tariffs, while an Indian textile exporter, Rajesh Patel, noted that lower costs will help him compete in the New Zealand market. The next step is parliamentary ratification in both countries, expected to conclude by December, after which the FTA will fully activate its tariff‑eliminating provisions.