The India-New Zealand Free Trade Agreement (FTA) is set to come into force on October 20, opening new opportunities for exporters and strengthening bilateral trade. The agreement aims to double India-New Zealand trade by 2030.

Indian exporters will receive duty-free access to New Zealand across all tariff lines. This is expected to improve the competitiveness of Indian products, particularly in textiles and garments, leather and footwear, gems and jewellery, engineering goods and processed foods.

The agreement also includes a New Zealand commitment to invest $20 billion in India over the next 15 years. Tariff reductions will be introduced in phases, with some duties removed immediately and others reduced over several years.

India will reduce or eliminate tariffs on around 70% of its tariff lines for imports from New Zealand. However, sensitive sectors such as dairy and several agricultural products will remain protected.

The agreement also provides tariff-rate quotas for selected agricultural products. For example, up to 6,250 tonnes of New Zealand kiwi fruit will receive duty-free access in the first year, with the quota rising to 15,000 tonnes by the sixth year. Apple imports under the agreement will face a 25% duty, compared with the existing 50% tariff, subject to specified conditions.

The FTA is expected to create greater market access for Indian exporters while allowing India to retain safeguards for sensitive domestic sectors.