Commerce Minister Piyush Goyal said the India‑New Zealand FTA will become operative on Oct 20, granting Indian exporters 100% duty‑free entry into New Zealand.
The pact, signed in April, lifts tariffs on all Indian goods, potentially boosting bilateral trade to ₹35,000 crore and attracting $20 billion of investment over 15 years in sectors from startups to infrastructure.
Before the agreement, New Zealand imposed tariffs of up to 10% on key Indian products such as ceramics, carpets, automobiles, textiles and auto components. The new deal eliminates those barriers and introduces an agricultural productivity partnership where New Zealand tech will support India’s expanding demand.
Meanwhile, Goyal said talks with Canada for a comprehensive economic partnership agreement are accelerating. The fifth negotiation round is scheduled for Oct 5, following a fourth round that concluded on Sept 18, as Canada seeks to diversify trade amid its dispute with the United States. Trade between the two nations stood at $30.4 billion in 2025, with a target of $70 billion by 2030.
For a small textile shop in Surat, the announcement offers a tangible boost. “We’re already lining up orders from New Zealand,” said Rakesh Patel, owner of Patel Textiles, “the duty‑free clause means we can price competitively and keep our margins.” This human angle highlights the pact’s impact beyond headlines.
India will roll out implementation measures next week, with ministries setting up joint working groups to address compliance and monitoring. The next milestone will be the signing of investment agreements that could see New Zealand firms invest in Indian manufacturing hubs by the end of 2027.