Duty-Free Access To $20 Billion Investment: India-New Zealand FTA To Take Effect From October | Key Highlights

The India-New Zealand Free Trade Agreement is likely to come into force in October 2026, news agency ANI reported, citing government sources. The agreement, which was signed in April 2026, will provide 100 per cent duty free export New Zealand. The pact also includes a USD 20 billion investment commitment from New Zealand over 15 years.

The India-New Zealand Joint Statement said the two sides had welcomed the conclusion and signing of the agreement and agreed to work together to ensure its early entry into force and effective implementation. 

Key Goals of the India-New Zealand FTA 

• The agreement aims to expand bilateral trade. Both nations have set an aspirational target of doubling two-way trade in goods and services to NZ7 billion by 2030, or about Rs 35,000 crore.
• India-New Zealand is encouraging businesses to deepen connectivity and explore opportunities based on the complementarities between their economies.
• The agreement provides duty-free or preferential treatment for Indian products in various sectors including agriculture, marine products, textiles and clothing, engineering, leather, footwear, pharmaceuticals, electronics and electrical machinery, and chemicals.

Commerce Minister Commentary 

Commerce and Industry Minister Piyush Goyal said on Thursday that with upcoming free trade agreements (FTAs) and efforts to deepen market access, India can access 75 per cent of global trade at lower rates than competitors.

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Goyal said at an event here that India's nine FTAs, covering an economy with a GDP of about $60 trillion, will provide priority access to nearly two-thirds of global trade. He called for a focused, comprehensive, and nationwide effort to make maximum use of FTAs to expand India's trade worldwide. Traders can meet across the country.

India-Chile FTA On Track 

The official said both India and Chile are looking to complete negotiations on the deal by next month.

"We are moving towards closure now," the official said, adding that India is looking at commitments on the supply of critical minerals from Chile. Chile has interest in agriculture and horticulture sectors. Commerce Secretary Rajesh Agarwal recently visited Chile to review the progress of the trade pact talks.

With Inputs From Agencies