India-New Zealand FTA: The Free Trade Agreement (FTA) between India and New Zealand will come into effect from October 20. Under this agreement, 100% of India’s exports will get market in New Zealand at zero duty. Apart from this, New Zealand has promised to help invest $20 billion in India in the next 15 years. This agreement is expected to help in increasing trade and strengthening economic relations between the two countries.
5,000 Indian professionals will get visas
Under this agreement, a route for temporary employment entry visa has also been created for Indian skilled professionals. Under this, a quota of 5,000 visas has been fixed. On this visa, Indian professionals will be able to stay in New Zealand for three years. Both countries have set a target of doubling mutual trade in the next five years. For this, India Trade Promotion Organization (ITPO) will also open its office in New Zealand, so that trade between the two countries can be promoted.
Relief to sectors like dairy and onion
India has given protection to some of its important sectors in this agreement. New Zealand has not been given any tariff exemption on things like dairy products, onions, almonds and sugar. At the same time, to help Indian farmers, New Zealand has assured of partnership related to increasing the productivity of farming. India and New Zealand completed negotiations on this agreement in December 2025. After this, both the countries signed it in April 2026. After its implementation, India will have trade agreements with almost all the members of the Regional Comprehensive Economic Partnership (RCEP) group, only China will be left out of it.
What will New Zealand get in India?
Under this agreement, India will give exemption on 70% of its tariff lines for goods coming from New Zealand. This is expected to benefit 95% of the total trade between the two countries. New Zealand apples will come to India with 25% import duty. For these, the quota will be 35,000 metric tons in the second year and 45,000 metric tons from the sixth year. The import quota of apple will be from 1st April to 31st August every year.
There will be facility to bring expensive Kiwi fruit at zero duty at $1.80 per kg. Its quota will be 8,000 metric tons from the second year and 15,000 metric tons from the sixth year. The import window for Kiwi will be from 1 April to 15 October.
There will be 11% duty on albumin coming from New Zealand. Its quota will increase from 1,500 metric tons in the second year to 3,000 metric tons in the fifth year. At the same time, the minimum import price for certified Manuka honey from New Zealand has been fixed at $30 per kg. Its quota will be 40 metric tons in the first year and 200 metric tons from the second year. There will be time for the whole year to import albumin and manuka honey.
49% increase in India-New Zealand trade
In the financial year 2024-25, the trade in goods between India and New Zealand stood at $ 1.3 billion. It recorded an increase of 49% on annual basis. Now the new agreement is expected to further increase exports, investment and trade between the two countries.
Source: ndtv.in
