India-New Zealand FTA To Come Into Force October 20, Boost Export Market Access

(MENAFN- KNN India) New Delhi, Oct 19 (KNN) The India-New Zealand Free Trade Agreement (FTA) will come into force on October 20, providing duty-free access for Indian goods across the New Zealand market and reducing tariffs on exports across several sectors, according to a presentation by the Ministry of Commerce and Industry.

Labour-intensive sectors such as textiles, apparel, leather and footwear are expected to benefit from the elimination of tariffs of up to 10 per cent. Engineering goods, pharmaceuticals, machinery, chemicals and agricultural products are also expected to gain improved market access, ANI reported.

The agreement covers 70 per cent of New Zealand's tariff lines, while India has excluded 30 per cent of its tariff lines. Of the tariff lines covered by the agreement, 30 per cent will see immediate duty elimination, while the remaining lines will undergo phased reductions over up to 10 years, tariff cuts or tariff-rate quotas.

Under the India-New Zealand Strategic Partnership Roadmap, both countries have set a target of doubling bilateral trade in goods and services to NZD 7 billion, equivalent to around Rs 35,000 crore, by 2030. Bilateral trade in goods and services currently stands at USD 2.4 billion.

India's services exports to New Zealand rose 13 per cent from USD 561 million to USD 634 million, while goods exports increased 16 per cent over the past four years to USD 566.5 million in 2025-26.

The agreement provides for faster customs clearance, with cargo targeted for clearance within 48 hours and express and perishable consignments within 24 hours. It also allows digital certification and self-certification of rules of origin for eligible status holders.

In agriculture, the agreement provides calibrated market access for apples, kiwifruit and honey, subject to safeguards such as tariff-rate quotas, minimum import prices and seasonal restrictions.

An agriculture productivity partnership is also planned to improve farm yields and connect producers with global value chains.

The agreement also includes a USD 20 billion investment commitment from New Zealand and provides opportunities for cooperation in pharmaceuticals, medical devices and services.

(KNN Bureau)

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