The India-New Zealand Free Trade Agreement (FTA) came into effect on Tuesday, offering Indian exporters duty-free access to the New Zealand market and creating opportunities across several industries, including textiles, leather, footwear, engineering goods, pharmaceuticals, gems and jewellery, and processed foods.
Signed on April 27, 2026, the agreement becomes India's 17th operational FTA and the seventh trade pact to take effect in the past five years. Negotiations began in 2010, stalled in 2015 and resumed in March 2025.
The agreement covers goods, services, investment, skills and mobility. Micro, small and medium enterprises (MSMEs), particularly those in labour-intensive sectors, are expected to benefit from improved market access.
Gulzar Didwania, partner at Deloitte India, said the pact could encourage foreign direct investment (FDI) into India. New Zealand has committed investments worth USD 20 billion over more than 15 years. However, actual investment inflows will depend on private-sector decisions, he added.
Shishir Priyadarshi, president of the Chintan Research Foundation, said the agreement reinforces open markets and predictable trade rules while creating opportunities for Indian businesses and professionals.
Deep Kapuria, trade expert and chairman of Hi-Tech Gears, highlighted provisions covering AYUSH, yoga instructors, student mobility and post-study work visas.
The agreement comes as bilateral trade has declined by around 11% to USD 1.15 billion in 2025-26, from USD 1.3 billion a year earlier. India's exports stood at USD 566.51 million, while imports totalled USD 589.1 million, leaving a trade deficit of USD 22.59 million.
Rani Singh, an Indian-origin New Zealander, said the pact could strengthen cooperation in education, tourism, technology, professional services and investment.
Both countries aim to double bilateral trade by 2030.