Union Commerce and Industry Minister Piyush Goyal announced on Monday that the Free Trade Agreement (FTA) between India and New Zealand will come into effect on the auspicious occasion of Vijayadashami (Dussehra), October 20, 2026. The date to implement the historic agreement was finalised during a virtual press conference in New Delhi with New Zealand Trade Minister Todd McLeay. The two countries signed the Free Trade Agreement (FTA) on April 27 to boost two-way commerce in goods and services and promote investment.
The most significant feature of this free trade agreement is that it provides duty-free access to goods shipped from India to New Zealand. Previously, New Zealand imposed a tariff of up to 10 per cent on Indian goods such as cars, auto components, carpets, ceramics, and textiles. Now, effective October 20, this tax will be completely eliminated, making Indian cars, auto parts, and traditional industries significantly cheaper in the New Zealand market.
According to government data, India-New Zealand merchandise trade grew from USD 873 million in 2023-24 to USD 1.3 billion in 2024-25, registering 49 per cent growth.
Target to increase bilateral trade to RS 35,000 crore
Union Minister Piyush Goyal said the goal of this historic deal is to increase total trade in goods and services between the two countries to about USD 4 billion, or Rs 35,000 crore, over the next four to five years. Notably, in July 2026, Prime Minister Narendra Modi made a historic visit to New Zealand, the first by an Indian Prime Minister in four decades. The visit helped finalise negotiations and provided strong political momentum to the relationship between the two countries.
New Zealand’s Prime Minister welcomes deal
New Zealand Prime Minister Christopher Luxon welcomed the agreement, saying that his government’s promise to enter into a free trade deal with India during its first term has been fulfilled. The agreement, which will be implemented from Dussehra, will not only boost India’s textile, pharmaceutical, and IT sectors but also create millions of new jobs in the country.
Merchandise exports from India to New Zealand rose to USD 711 million in 2024-25, showing a 32 per cent increase. India’s services exports to New Zealand grew by 13 per cent in 2024 to USD 634 million, with major sectors including travel, IT and business services. In 2024-25, India’s exports to New Zealand exceeded imports from the country, maintaining a positive trade balance.
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