New Zealand’s free trade agreement with India has officially come into force, opening new opportunities for exporters and businesses in both countries as Wellington and New Delhi seek to deepen trade and investment ties.
New Zealand Prime Minister Christopher Luxon said the agreement would help Kiwi businesses reach more than a billion additional customers through reduced tariffs.
“Today, our India FTA is in effect. Kiwi businesses can now reach over a billion more customers with reduced tariffs, creating more jobs, higher wages and more money flowing into Kiwi communities,” Luxon said.
He highlighted an early commercial success, announcing that Auckland-founded technology company Valocity had secured the biggest deal in its history on the first day of the agreement.
“When Kiwi businesses win overseas, Kiwis win at home,” Luxon said, congratulating Valocity and its team.
New Zealand Trade and Investment Minister Todd McClay said 57 per cent of New Zealand’s exports to India would now enter tariff-free, including sheep meat, wool, coal and most forestry products. The share of tariff-free exports is expected to rise to 82 per cent over time, with the next round of tariff reductions scheduled for 1 January 2027.
“We launched talks in March 2025 and, by working harder and faster, concluded them in just nine months. That’s a record for India on a comprehensive trade agreement,” McClay said.
“Today, just 19 months after we started, it’s in force and working for exporters.”
New Zealand’s wine industry is expected to benefit from lower Indian tariffs. McClay said duties that had reached 150 per cent would be reduced to 25 or 50 per cent over 10 years, alongside improved market access.
He said the agreement would help New Zealand exporters diversify their markets during a period of global economic uncertainty and support the government’s goal of doubling export value over 10 years.
India targets new export opportunities
India is also looking to expand its exports to New Zealand under the agreement, with Indian officials highlighting opportunities for manufacturers, farmers, artisans and small businesses.
On Monday, India’s Commerce and Industry Minister Piyush Goyal flagged off the first export of a JCB machine from India to New Zealand ahead of the agreement’s commencement.
Farm products, gems and jewellery, engineering goods, sports goods, footwear and leather products were also expected to be among the goods shipped as the agreement took effect.
Goyal described the partnership as mutually beneficial, saying that duty-free access to the New Zealand market would create opportunities for Indian exporters, particularly micro, small and medium enterprises, artisans, farmers and women entrepreneurs.
“For India, 100% duty-free access to the New Zealand market opens significant new opportunities for our exporters,” Goyal said.
The agreement also includes an Agricultural Productivity Partnership designed to strengthen cooperation beyond tariff reductions. According to an Indian government statement, it will facilitate the sharing of technology, training and agricultural best practices, with dedicated action plans for kiwifruit, apples and honey.
Cooperation will also extend to horticulture, forestry, livestock and fisheries.
India has retained protections for sensitive sectors, with dairy, sugar, edible oils and key agricultural commodities excluded from tariff concessions to safeguard farmers, dairy producers, fisherfolk and rural communities.
The agreement is expected to strengthen commercial ties between the two countries by improving market access, encouraging investment and creating opportunities for businesses seeking to expand internationally.
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