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India-New Zealand FTA Kicks Off October 20: Immediate Duty Cuts & Gradual Price Drops
M
Moneycontrol•21-09-2026, 19:02
India-New Zealand FTA Kicks Off October 20: Immediate Duty Cuts & Gradual Price Drops
- •The India-New Zealand Free Trade Agreement (FTA) comes into force on October 20, enhancing economic ties between the two nations.
- •Indian exports will gain duty-free access to New Zealand across all tariff lines, benefiting sectors like textiles, leather, gems, engineering goods, and processed foods.
- •New Zealand will receive preferential access to India for 70.03% of tariff lines, covering 95% of bilateral trade, with immediate duty elimination on wood, wool, sheep meat, and raw hides.
- •Tariffs on other New Zealand products, including wine and pharmaceuticals, will be phased out over 3, 5, 7, or 10 years, while sensitive sectors like dairy remain protected by India.
- •The FTA also includes a $20 billion investment commitment from New Zealand, agricultural cooperation, and new mobility opportunities for Indian students and professionals.
Key Questions Answered
The India-New Zealand Free Trade Agreement will officially come into force on October 20.
New Zealand has committed to providing duty-free access for 100 percent of Indian exports covering all tariff lines. Key sectors include textiles and apparel, leather and footwear, gems and jewellery, engineering goods, and processed food products.
Duties on New Zealand products covering wood, wool, sheep meat, and raw hides will be eliminated immediately upon the agreement taking effect, accounting for 30 percent of tariff lines included in the agreement.
