The India-New Zealand Free Trade Agreement (FTA) will enter into force on October 20, 2026, giving Indian exporters zero-duty access across all tariff lines in the New Zealand market. Agriculture and allied products, horticulture, processed foods, spices, cereals, organic products and marine products are among the sectors expected to benefit from the new market access.
Union Commerce and Industry Minister Piyush Goyal and New Zealand Minister for Trade and Investment Todd McClay announced the implementation date during a virtual meeting on Monday after completing the required domestic processes in both countries. The agreement was signed by the two ministers at Bharat Mandapam, New Delhi, on April 27, 2026. New Zealand's Parliament passed the implementing legislation on September 16.
The agreement marks India's first FTA under which New Zealand has provided 100% duty-free access across all tariff lines from the date of entry into force. New Zealand's existing tariffs on Indian products range from zero to 10%, with an average of 2.2%, according to the government factsheet.
Agriculture and food exports get wider access
The agriculture and allied sector is a key component of the agreement. The FTA eliminates tariffs of up to 5% on most Indian agricultural and allied products, covering fresh fruits and vegetables, horticultural products, coffee, tea, cocoa, spices and cereals.
Indian processed food exporters will also gain from duty-free access. Products such as pickles, preserved and frozen vegetables, jams, sauces, ready-to-eat foods, biscuits, bakery products, flour, starch products, spice mixes, fruit juices and coffee extracts will receive improved market access. Edible oils, confectionery, ice cream, protein products and animal feed are among other categories identified as opportunities.
India's agricultural exports to New Zealand increased from USD 95.62 million in FY2023-24 to USD 108.21 million in FY2024-25. Nearly one-third of these exports earlier faced tariffs of up to 5%. New Zealand imports around USD 6.1 billion of agricultural products annually, indicating scope for Indian exporters to expand their presence.
The agreement is also expected to support value addition in agriculture by giving food-processing companies, including MSMEs, access to a larger market without the earlier tariff disadvantage.
Productivity partnership for apples, kiwifruit and honey
Beyond tariff concessions, India and New Zealand have agreed to establish an Agricultural Productivity Partnership covering horticulture, honey and related agricultural activities. Dedicated action plans for apples, kiwifruit and honey are intended to improve productivity, quality and farmer incomes. Centres of Excellence will support orchard management, post-harvest practices, supply-chain management, food safety and sustainable beekeeping. A Joint Agriculture Productivity Council will oversee implementation and cooperation.
The broader agricultural cooperation framework includes horticulture, apiculture and honey, livestock, forestry, wine and organic agriculture. It provides for technology exchange, collaborative research, training and capacity building, including work on temperate fruits such as kiwifruit, apples, avocados, berries and stone fruits.
The agreement also envisages cooperation on post-harvest and processing technologies and the introduction of high-yield, low-input varieties.
Sensitive farm sectors remain protected
While Indian exports receive comprehensive access to New Zealand, India's tariff concessions are more calibrated. India has offered concessions on 70.03% of tariff lines, covering about 95% of current bilateral trade value, while 29.97% remain in the exclusion list.
The exclusion list includes sensitive dairy products such as milk, cream, whey, yoghurt and cheese; several animal products; onions, chana, peas, corn and almonds; sugar and artificial honey; and animal, vegetable and microbial fats and oils.
For apples, kiwifruit, Mānuka honey and albumins, including milk albumin, India has provided limited tariff-rate quotas (TRQs), along with minimum import price and other safeguard provisions.
For example, the in-quota apple allocation starts at 32,500 tonnes in the first year and rises to 45,000 tonnes by the sixth year, with a 25% duty and minimum import price. The kiwifruit quota starts at 6,250 tonnes and rises to 15,000 tonnes, while Mānuka honey has a 200-tonne annual in-quota provision.
Marine exports and organic products
Marine products are another important beneficiary. Indian marine exports to New Zealand were only USD 15.89 million in FY2024-25 against India's global marine exports of USD 7.09 billion. The FTA eliminates tariffs, including duties of up to 5% on processed seafood. Frozen shrimp and prawns, fish, molluscs, dried and salted fish and prepared seafood are among the products covered.
The agreement also provides for a Mutual Recognition Arrangement for organic products. Products identified as potential beneficiaries include Basmati rice, flax seeds, psyllium husk, soybean oil cake and organic black tea.
Faster clearance for agricultural shipments
Trade facilitation provisions could be particularly relevant for agricultural and perishable products. The agreement provides for electronic documentation, risk-based inspection and faster cargo clearance, with a stated target of 24 hours for perishables and express shipments and 48 hours for other cargo.
The SPS provisions also provide for cooperation on food safety and plant and animal health, including electronic SPS certification and efforts to streamline certification and import-permit procedures.
Investment and wider economic opportunities
The agreement is accompanied by New Zealand's commitment to facilitate USD 20 billion of investment into India over 15 years, including areas such as agriculture technology, manufacturing, infrastructure, renewable energy, skill development and emerging technologies.
Beyond merchandise trade, the FTA provides expanded services commitments, skilled mobility pathways and cooperation for MSMEs. New Zealand has committed access across 118 services sectors, while 5,000 skilled Indian professionals can receive temporary work opportunities of up to three years under the specified pathway.
With bilateral merchandise trade at USD 1.3 billion in 2024-25 and India's services exports to New Zealand at USD 634 million in 2024, the agreement seeks to broaden a relatively modest trade relationship. For agriculture, its significance will depend on Indian exporters' ability to meet New Zealand's food-safety, quality, traceability and regulatory requirements while using the new tariff preferences.