India–New Zealand FTA expected to take effect soon. More Details inside

India’s Free Trade Agreement (FTA) with New Zealand is likely to come into force in September, according to India’s Commerce and Industry Minister Piyush Goyal.

Speaking on Friday while announcing the rollout of seven components of a Rs 25,060 crore export promotion mission, Goyal outlined timelines for several trade deals currently in progress. He said FTAs with the UK and Oman are expected to be implemented in April, and added that the 27-member European Union is also keen to move swiftly on its agreement with India.

"The 27 countries want us to implement it as soon as possible," Goyal said.

Negotiations between India and New Zealand concluded on December 22, 2025, paving the way for a comprehensive trade pact aimed at deepening economic ties. The agreement is expected to grant India tariff-free access to New Zealand’s markets, attract USD 20 billion in investment over the next 15 years, and double bilateral trade within five years.

Under the deal, tariffs will be eliminated or reduced on 95 per cent of New Zealand’s exports to India. These include products such as wool, coal, wood, wine, avocados and blueberries. However, New Delhi has not offered concessions on imports of dairy, onions, sugar, spices, edible oils and rubber, citing the need to protect farmers and domestic industries.

New Zealand, which is aspiring to invest USD 20 billion in India over the next 15 years across manufacturing, infrastructure, services, innovation and job creation, will also receive quota-based tariff reductions for kiwifruit and apple exports.

The agreement is expected to be formally signed in the first half of 2026 and aims to lift bilateral trade to USD 5 billion over the next five years.

Momentum for the deal gathered pace in March 2025 when New Zealand Prime Minister Christopher Luxon visited India for a five-day trip. During the visit, he held bilateral talks with Prime Minister Narendra Modi and relaunched free trade negotiations between the two countries. Luxon was accompanied by several of New Zealand’s leading chief executives and industry representatives.

Subsequently, New Zealand concluded its negotiation rounds with India, with India’s Union Minister Piyush Goyal also visiting New Zealand towards the end of the talks as both sides moved to finalise the agreement.