The India-New Zealand Free Trade Agreement (FTA) is expected to come into force by the end of 2026, marking a major step in strengthening bilateral trade, investment and economic cooperation between the two countries.
According to New Zealand’s Minister for Trade and Investment Todd McClay, both governments are working towards the early implementation of the agreement, which has already cleared its first reading in the New Zealand Parliament. Once operational, the FTA is expected to provide Indian exporters with immediate zero-tariff access to the New Zealand market across a wide range of goods and services.
In return, up to 95% of New Zealand’s exports to India are expected to become duty-free or benefit from significantly lower tariffs over the next seven to eight years. The agreement is expected to boost bilateral trade, strengthen supply chains, and improve market access for automobiles, chemicals, agricultural machinery, and the services sector.
The trade pact builds on the India-New Zealand Strategic Partnership, under which both countries signed 16 agreements covering trade, investment, defence, technology, climate change, science and people-to-people cooperation. Plans are also underway to establish a dedicated investment facilitation desk to encourage greater New Zealand investment in India.
Additionally, they are working towards launching direct air connectivity within the next one to two years, while identifying critical minerals, advanced manufacturing, space technology and security cooperation as priority areas for future collaboration.
The India-New Zealand Free Trade Agreement is expected to enhance trade resilience, reduce logistics costs and create long-term opportunities for businesses as both nations deepen their economic partnership.
