India-NZ trade deal expected to take effect from 19 Oct:No duty on Indian exports: New Zealand to invest $20 billion over 15 years

The Free Trade Agreement (FTA) between India and New Zealand is expected to come into force on 19 October. An official gave this information on 15 September. The two countries signed the agreement on 27 April. Its aim is to boost trade in goods and services and promote investment. Under the agreement, New Zealand has also said it will make 100% of India’s exports tax-free. Agreement to benefit Indian products At present, New Zealand imposes tariffs of up to 10% on India’s key products. These include ceramics, carpets, automobiles and auto components. Once the FTA comes into force, all Indian exports, including these products, will receive duty-free access to New Zealand. Goal to increase trade between the two countries India and New Zealand signed the Free Trade Agreement on 27 April. The agreement aims to increase trade in goods and services between the two countries. At the same time, both countries have agreed to promote investment. New Zealand has committed to investing $20 billion in India over 15 years. What is an FTA? A free trade agreement is a trade pact between two countries under which the duties (tariffs) imposed on imports and exports, along with other trade barriers, are reduced or eliminated. Its objective is to boost trade, attract investment and strengthen the economies of both countries. India-New Zealand Trade Pact: Concessions Granted on Agri Products; Dairy Excluded to Protect Domestic Interests India has opened up 70% of its tariff lines to grant market access to New Zealand under the newly signed Free Trade Agreement (FTA). While India has extended tariff concessions on agricultural products such as apples, kiwifruit, and manuka honey, these will be subject to strict quota limits and minimum import price (MIP) conditions. Additionally, New Zealand will receive immediate zero-duty access for over 54% of its exports to India. This duty-free access covers products like sheep meat, wool, coal, and forestry products. Meanwhile, tariffs on seafood, iron, steel, and aluminum scrap will be phased out gradually over the next 10 years. Sensitive Sectors Kept Out of the Deal To safeguard domestic industries and farmers, India has excluded several sensitive sectors from the concessions list. These include: Talks Initiated in 2010, Deal Finalised in 2025 India and New Zealand officially signed the Free Trade Agreement on April 27, aiming to significantly boost bilateral trade in goods and services. The journey to this landmark agreement has been long: 2010: Bilateral trade negotiations first began. 2015: Talks were suspended after nine rounds of discussions. March 2025: The negotiation process was officially revived. December 22, 2025: Both nations successfully concluded the negotiations. $20 Billion Investment Commitment Alongside trade, both nations have agreed to foster deeper investment ties. Under the pact, New Zealand has committed to investing $20 billion in India over a 15-year period. The comprehensive trade agreement consists of 15 chapters, covering critical areas such as trade in goods, services, rules of origin, technical barriers to trade (TBT), and customs procedures.