India and New Zealand today signed a free trade agreement (FTA) aimed at boosting two-way trade and investment. In a post on social media platform X, Union Commerce and Industry Minister Piyush Goyal called the deal “India’s first women-led FTA” and a “defining milestone” in the bilateral economic journey between the two countries.
Goyal added that the bilateral agreement was concluded in nine months and “reflects deep mutual trust, shared ambition and shared commitment to prosperity”.
100% duty free access for Indian goods
According to Goyal, the India-New Zealand FTA provides 100% duty-free access for Indian exports to New Zealand, “opening up significant opportunities for small and medium enterprises, farmers, women, youth, professionals and job-creating sectors, while protecting India’s sensitive interests through a balanced and calibrated framework”.
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“With zero-tariff market access from entry into force, on par with New Zealand’s other trading partners, Indian products will be fully competitive and on a level playing field in that country,” he added.
“The granting of 100% duty-free access by New Zealand will strengthen India’s competitiveness in key manufacturing and labour-intensive sectors of textiles, leather, footwear, engineering goods, plastics and processed foods,” says Gautam Khattar, director of Price Waterhouse & Co LLP.
He added that tariff rate quotas with minimum import prices protect domestic farmers, while explicit recognition of AYUSH and related wellness services expands opportunities for Indian practitioners in New Zealand.
What product categories does the FTA cover?
The agreement covers all tariff items or product categories and is “expected to significantly boost SMEs and employment by increasing competitiveness in labour-intensive sectors such as textiles, clothing, leather, footwear, gems and jewellery, engineering goods and processed food”.
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Notably, New Zealand previously maintained peak tariffs of up to 10 percent on key Indian exports, including ceramics, carpets, automobiles and auto components.
Meanwhile, New Zealand products that will benefit from tariff reductions include wine, pharmaceutical drugs, polymers, aluminium, iron and steel and goods under tariff quotas such as manuka honey, apples, kiwifruit and albumins, including milk albumin.
Full list of Indian items set to zero duty in New Zealand
SectorItemsTariff according to FTATariff before FTAClothing and textilesAccessories and miscellaneous items, clothing (knitted and woven), carpets and floor coverings, dresses, home textiles, packaging textiles, technical textiles, yarns and semi-finished products and women’s clothing.0%To 10%Shoe and leather packaging, belts, finished leather (beef, cowhide and leather handbags, various accessories), gloves. various leather goods, processed leather (raw material), saddlery, trunks, wallets. 0% to 10% engineering goods Aluminum products, copper products, electrical machinery and equipment, mechanical machinery (industrial equipment), industrial machinery parts and equipment, tools and precision equipment, iron and steel products, pipes, tubes and structural parts, tools and industrial hardware and transport equipment (vehicles and parts). 0%To 10%PharmaceuticalsMedical dressings and adhesives, medical polymers and specialty materials, nutritional and therapeutic preparations, textile-based medical consumables and specialized medical devices.0%To 5%Agricultural and related Beverages and extracts, oils, fats and specialty products, packaged and semi-finished cereals, spices, staple foods and cereal-based spices and spices.0% to 5% marine products Crustaceans and molluscs, dried and salted fish products, fish (fresh, chilled and frozen), fish extracts, frozen shrimp and prawns, molluscs including squid and octopus, prepared and preserved fish and processed marine products. 0%Up to 5%Jewelry and precious stones Items made of stones and precious metals, gold and silver jewelry, bijouterie, pearls, precious and semi-precious stones.0%Up to 5%Plastics and rubber Kitchen utensils, packaging material, pipes and fittings, plastic products and sheets and foils0%electronics C motors, control panels, electroelectronics filter machines, generators, insulated wires, machinery parts, mineral processing machinery, refrigerators and refrigeration equipment.0%To 10%ChemicalsGlues, candles, cleaning products, hair care, industrial salts, inorganic chemicals, lubricants, metal oxides, organic intermediates, perfumes and cosmetics, pesticides, skin care detergents, specialty skin care chemicals, soaps0% 5% Source: Ministry of Trade and Commerce, April 27 2026
The bilateral agreement between India and New Zealand notably includes a commitment to facilitate $20 billion in investment in India. A rebalancing clause is incorporated into the agreement to provide a framework for addressing any shortfall in investment delivery, ensuring reliable and tangible economic results.
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