The India-New Zealand Free Trade Agreement (FTA) came into force on Tuesday, opening new opportunities for Indian exporters through 100% duty-free access to the New Zealand market. The agreement combines improved market access with agricultural cooperation, including technology transfer, training and productivity enhancement initiatives for Indian farmers.
Announced by Union Minister of Commerce and Industry Piyush Goyal and New Zealand Minister for Trade and Investment Todd McClay, the agreement aims to strengthen bilateral trade, create employment opportunities and expand cooperation across agriculture, manufacturing and services.
For agriculture, the agreement places particular emphasis on apples, kiwifruit and honey, while protecting sensitive domestic sectors such as dairy, sugar and edible oils from tariff concessions.
Agricultural Productivity Partnership to Support Farmers
The Agricultural Productivity Partnership is a key component of the agreement, extending cooperation beyond tariff reductions to bring global technology, training and best agricultural practices to Indian farmers.
The partnership includes dedicated action plans for apples, kiwifruit and honey, with broader cooperation covering horticulture, forestry, livestock and fisheries. The initiatives aim to improve cultivation practices, reduce post-harvest losses and enhance agricultural productivity.
New Zealand will provide technical assistance for establishing Centres of Excellence for kiwifruit, apples and honey.
Under the first phase of the Kiwifruit Action Plan, sites have been identified at Pfutsero in Nagaland and Magra in Uttarakhand. Two additional Centres of Excellence for apple production are proposed in Himachal Pradesh and Uttarakhand, while the Honey Action Plan envisages centres in Uttar Pradesh and West Bengal.
The initiatives are expected to support technology transfer, improved orchard management and better production practices. Their impact on farm incomes will depend on implementation and the extent to which farmers can access the resulting technology and training.
Market Access Linked to Farmer Welfare
The agreement links tariff-rate quotas (TRQs) for apples, kiwifruit and Mānuka honey to the implementation of the respective action plans. A Joint Agriculture Productivity Council will oversee the process.
According to the government, this arrangement is intended to connect market access with farmer welfare rather than treating trade liberalisation as a standalone objective.
For Indian horticulture producers, the combination of technical support and access to overseas markets could create opportunities to improve product quality and competitiveness. Better post-harvest management, storage, packaging and supply-chain infrastructure will also be important in helping farmers benefit from export opportunities.
Dairy, Sugar and Edible Oils Excluded From Concessions
To safeguard domestic producers, sensitive products such as dairy, sugar, edible oils and key agricultural commodities have been excluded from tariff concessions under the agreement.
The exclusions are intended to protect farmers, dairy producers, fisherfolk and rural communities from potential adverse effects arising from increased import competition.
The agreement also incorporates Rules of Origin, a bilateral safeguard mechanism and anti-circumvention provisions. These measures are designed to ensure that preferential trade benefits reach eligible exporters and that the agreement's provisions are not misused.
Indian Products Get Duty-Free Access
New Zealand has eliminated customs duties across all tariff lines covering Indian exports, removing peak tariffs of up to 10%. On the occasion, the first-ever export of a JCB machine from India to New Zealand was flagged off by the Union Minister of Commerce and Industry.
Agricultural products and processed foods are among the categories expected to benefit, alongside textiles, footwear, engineering goods, pharmaceuticals and other manufactured products.
Duty-free access could improve the price competitiveness of Indian products in New Zealand. However, translating this advantage into higher farm incomes will require exporters to meet quality and food-safety standards, establish reliable supply chains and connect effectively with producers and farmer organisations.
New Zealand Commits to Facilitate USD 20 Billion Investment
New Zealand has committed to facilitate USD 20 billion in investment into India. The proposed investment is expected to benefit agriculture, manufacturing, infrastructure and start-ups, supporting innovation, entrepreneurship and employment generation.
The India-New Zealand FTA supports the countries' Strategic Partnership Roadmap to 2030, which sets an aspirational target of doubling bilateral trade in goods and services to NZ$7 billion, equivalent to approximately Rs. 35,000 crore, by 2030.
Negotiations for the agreement began on 16 March 2025 and concluded on 22 December 2025. The two countries signed the agreement on 27 April 2026.