Farmers and businessmen of the country are going to get a big gift on Dussehra. The Free Trade Agreement or FTA between India and New Zealand will come into force from 20 October 2026, the day of Dussehra. Union Commerce Minister Piyush Goyal gave information about this on Monday. He said that after the agreement, 100% of the exports from India to New Zealand will get duty-free entry. This means that there will be no import duty on Indian goods, due to which the products will become more competitive in terms of price.
MSME, farmers, artisans and exporters benefit
With this, MSMEs, farmers, artisans and exporters can get new markets. Opportunities for auto components, automobiles, aerospace technology and other Indian products are expected to increase in New Zealand. With the agreement, a target has also been set to facilitate investment of 20 billion dollars, approximately Rs 20 lakh crore, from New Zealand to India in the next 15 years.
India has excluded sensitive products like dairy, onion, gram, peas, maize, almonds, artificial honey and sugar from giving duty concessions to New Zealand, so as to protect domestic farmers and industries from import competition. The FTA was signed on 27 April 2026 and the New Zealand Parliament passed legislation implementing it on 16 September.
Union Commerce and Industry Minister Piyush Goyal and New Zealand Trade Minister Todd McClay announced this on Monday.
Describing this agreement as historic, Piyush Goyal said that from October 20, no import duty will be imposed on exports from India to New Zealand. That means Indian goods will get duty-free entry in the New Zealand market.
Duty free entry of Indian goods in New Zealand
Piyush Goyal said, “From October 20, there will be no import duty on exports from India to New Zealand. All exports from India will be duty free and New Zealand will get priority access to the world’s fastest growing economy.”
According to the Commerce Ministry, this FTA is expected to provide special benefits to small and medium scale industries in India. New opportunities will also be created for farmers, artisans and youth.
Commitment to invest Rs 20 lakh crore in 15 years
A major feature of the India-New Zealand FTA is New Zealand’s commitment to invest in the Indian economy. Under the agreement, New Zealand has committed foreign investment of up to Rs 20 lakh crore in India in the next 15 years.
This investment is expected to create new opportunities for business, manufacturing and employment in India.
India did not give exemption on these products including dairy
Under FTA, India has taken caution regarding its sensitive sectors. Piyush Goyal said that India has not given any exemption to New Zealand in sensitive products like Dairy, Onion, Gram, Peas, Maize, Almonds, Artificial Honey and Sugar.
This means that the interests of the domestic market and Indian producers regarding these sensitive products have been protected in the agreement.
Goods coming from New Zealand to India also benefit
FTA is not limited to opening markets only for Indian exporters. With the agreement, some New Zealand products will also get better access to the Indian market. These mainly include sectors like wood, wool, sheep meat, raw leather.
New opportunities in services and jobs too
According to the Commerce Ministry, the agreement does not only include trade in goods. New opportunities will also be created in the fields of Services, Investment and Professional, Student and Youth Mobility. This is expected to open doors to better opportunities for Indian professionals and students in New Zealand.
Big role of Indian community in India-New Zealand relations
About 3 lakh people of Indian origin and NRIs live in New Zealand. These are about 5% of the total population of New Zealand. This Indian community plays the role of a cultural and economic bridge between the two countries. This can strengthen trade and business relations between India and New Zealand and also boost the demand for Indian goods and services.
What did New Zealand say?
New Zealand’s Trade Minister Todd McClay said that both the countries can be proud of this bilateral trade agreement between India and New Zealand. He said that this agreement is being implemented at a time when uncertainty is increasing in international trade and tariff rates are also increasing.
This FTA, which will come into effect from October 20, 2026, will be important for the businessmen of both the countries at a time when tariffs and trade uncertainty remain a big challenge in global trade.
Source: ndtv.in
