New Zealand trade pact in force: all Indian exports enter duty free from today

The free trade agreement between India and New Zealand came into force on Tuesday, Vijayadashami, giving every Indian product duty-free entry into the New Zealand market from today.

“100% of tariff lines are going to become zero from tomorrow onwards,” Sampath Kumar, Additional Director General of Foreign Trade, said on Monday. Indian textiles, clothing, leather goods and footwear, which faced New Zealand duties of up to 10%, now go in duty free, as do pharmaceuticals, agricultural and marine products, plastics, chemicals and electrical goods that carried duties of up to 5%.

India’s side of the bargain is narrower. It has offered tariff liberalisation on about 70% of its tariff lines and kept protection for sensitive sectors, including dairy and certain agricultural products. The first Indian duty cuts, on goods such as New Zealand sheep meat and kiwi fruit, also take effect today.

At a ceremony in New Delhi on Monday evening to mark the start of the pact, Commerce and Industry Minister Piyush Goyal said the agreement would “create employment opportunities” and was framed while “keeping farmers’ welfare at the heart of the government’s approach”. He flagged off the first export of a JCB machine to New Zealand, one of a series of shipments planned across farm goods, gems and jewellery, engineering, sporting goods, footwear and leather.

New Zealand has committed to facilitate $20 billion of investment into India in areas such as manufacturing, infrastructure and services, and the agreement opens new pathways for Indian professionals, students and young people. The government’s aim is to double trade in goods and services to about ₹35,000 crore by 2030.

Trade is small for now. The Commerce Ministry put two-way merchandise trade at $1.3 billion in 2024-25, up 49% on the year before, with Indian exports of $711 million. Goyal and New Zealand’s Trade Minister Todd McClay signed the agreement in New Delhi on 27 April.