India-New Zealand trade pact takes effect on Vijayadashami, all Indian exports get duty-free entry

India's free trade agreement with New Zealand came into force on Tuesday, October 20, a date the government chose to coincide with Vijayadashami. From today, goods shipped from India to New Zealand enter that market without customs duty across all tariff lines.

The pact was signed in New Delhi in April 2026, roughly a year after negotiations were launched in March 2025. Commerce and Industry Minister Piyush Goyal led a ceremony in the capital to mark the launch and described the partnership as a win for both countries.

What changes for Indian exporters

Under the agreement, New Zealand has opened its market to 100 per cent of Indian exports at zero duty. Officials say the gains are aimed at labour-intensive sectors, small and medium enterprises, artisans and farmers, with fruits, vegetables and spices among the farm products expected to find wider access.

Goyal on Monday flagged off what was described as the first-ever export of a JCB construction machine made in Pune to New Zealand. Further consignments from sectors including engineering goods, leather, footwear, sporting goods and agriculture are planned as part of the launch.

India, for its part, has kept sensitive areas out of the deal. Dairy products, a major New Zealand export and a politically delicate subject for India's millions of small milk producers, remain protected.

Investment and mobility

New Zealand has committed to facilitate about US$20 billion of investment into India, with the government listing manufacturing, infrastructure, services and innovation as target areas. Reports describe this as a commitment spread over 15 years rather than a guaranteed sum.

The agreement also contains provisions on services and on the movement of professionals, students and young people, which the government says will open new routes for Indians seeking to work or study in New Zealand.

Why it matters

Trade between the two countries is still small. Bilateral merchandise trade stood at about US$1.1 billion in 2025-26, and the stated goal is to roughly double overall trade in goods and services to around Rs 35,000 crore by 2030.

For India, the deal adds another developed-market partner at a time when talks with the United States on a trade agreement are continuing and exporters are looking to diversify. The structure of the pact, which gives Indian goods full duty-free entry while keeping dairy off the table, is likely to be watched as a template in other negotiations.