The India-New Zealand Free Trade Agreement (FTA) officially took effect on Tuesday, marking a significant milestone in bilateral trade relations. Commerce and Industry Minister Piyush Goyal announced that Indian exports to New Zealand will now enjoy zero import duty, a move expected to boost competitiveness in labour-intensive sectors like textiles, apparel, leather, and footwear. New Zealand has also pledged to invest $20 billion in India over the next 15 years under the pact.
Sensitive sectors such as dairy, onions, chickpeas, peas, corn, almonds, artificial honey, and sugar have been excluded from the trade deal to protect domestic industries. The agreement includes Tariff Rate Quotas (TRQ) for goods like apples, kiwi fruit, albumin, and Manuka honey, allowing limited duty-free imports. Centres of Excellence will be established to enhance agricultural partnerships, particularly in areas like apples, kiwifruit, and honey.
The FTA also introduces new pathways for student mobility and work visas. New Zealand has removed numerical caps on Indian students, guaranteed at least 20 hours of work per week during study, and extended post-study work opportunities. A dedicated Temporary Employment Entry (TEE) Visa pathway has been created for Indian professionals in skilled occupations, with a quota of 5,000 visas at any given time and a stay of up to three years.
Bilateral trade in goods and services currently stands at $2.4 billion, with India's goods exports to New Zealand at $711.1 million and imports at $587.13 million in the last financial year. The agreement, signed on April 27 and ratified on September 21, aims to strengthen economic ties and create new opportunities for both nations.