New Delhi, September 29 (Daily Kiran) : The Free Trade Agreement (FTA) between India and New Zealand is set to take effect on October 20, 2026. This agreement aims to significantly enhance trade between the two nations, with a goal of doubling bilateral trade by 2030. Under the FTA, Indian exporters will gain tariff-free access to the New Zealand market across all tariff lines, which is expected to substantially improve the competitiveness of Indian products.
According to an article on Khalsa Vox News, the sectors that stand to benefit the most from this agreement include textiles and apparel, leather and footwear, gems and jewelry, engineering goods, and processed foods. The removal of import duties will make Indian products more competitive and affordable in New Zealand, creating new opportunities for exporters.
Another key aspect of the agreement is New Zealand’s commitment to invest $20 billion in India over the next 15 years. Both countries have also set a mutual target to double their bilateral trade by 2030.
The provisions of the FTA will be implemented in phases. Some products will see immediate duty elimination, while others will experience gradual reductions over several years. Certain agricultural products will still be subject to quotas and safeguard measures.
Indian consumers may notice the most immediate effects with products from New Zealand, such as kiwifruit, apples, and manuka honey. However, the agreement does not fully open the Indian market; the government has provided special protections for the dairy sector and several sensitive agricultural products.
Under the agreement, India has agreed to reduce or eliminate duties on approximately 70% of tariff lines from New Zealand. Some products, including timber, wool, sheep meat, and raw hides, will gain immediate duty-free access.
For agricultural products, India has implemented a Tariff Rate Quota (TRQ) system, allowing limited quantities of imports at reduced duties while maintaining safeguard measures for larger imports. This aims to balance market access with domestic interests.
Kiwifruit will be one of the primary beneficiaries of this arrangement, with a duty-free import limit of 6,250 tons from New Zealand in the first year, increasing to 15,000 tons by the sixth year. Minimum import prices and seasonal conditions will apply.
Similarly, a quota has been established for apples, which will incur a 25% import duty, down from the current 50%. This is designed to limit the impact of cheaper imports on Indian fruit producers.
Crucially, the agreement does not open India’s sensitive dairy sector to low-duty imports. The government has taken into account the livelihoods of millions of small farmers and livestock keepers by excluding dairy and several agricultural products from the FTA.
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