Piyush Goyal, Union Commerce and Industry Minister, on Monday, September 21, said that the India-New Zealand Free Trade Agreement will come into force on October 20--on the occasion of Dussehra. Earlier, in April this year, the two countries signed the Free Trade Agreement (FTA) to boost two-way commerce in goods and services and promote investments.
The FTA, which will provide duty-free access to 100 per cent of Indian exports to the island country, will come into force on Dussehra, which is on Oct 20, Goyal said.
The commerce minister announced this during a virtual interaction with New Zealand’s trade and investment Minister Todd McClay.
"I'm delighted that we are taking forward the next important milestone in our bilateral economic partnership: the entry into force of the India-New Zealand Free Trade Agreement, which will come into force on the auspicious occasion of Dussehra on 20th of October, 2026," Goyal said.
The Minister said that this development reflects the shared commitment of India and New Zealand to build a stronger and more advanced economic partnership.
New Zealand Tariff On India
Currently, New Zealand imposes the highest tariffs of up to 10 per cent on basic Indian goods, including ceramics, carpets, automobiles and auto parts. New Zealand has pledged to invest $20 billion in India over 15 years.
According to government figures, India-New Zealand merchandise trade is set to grow from $873 million in 2023-24 to $1.3 billion in 2024-25, a growth of 49 per cent.
India’s merchandise exports to New Zealand are expected to grow to $711 million in 2024-25, a growth of 32 per cent.
India’s services exports to New Zealand are expected to grow by 13 per cent to $634 million in 2024. This includes key sectors such as travel, IT and business services. In 2024-25, the positive trade balance continued, with India's exports exceeding imports from New Zealand.
(With Input From Agencies)