SF Prep

India–New Zealand FTA to enter into force on 20 October 2026; all Indian goods get duty-free access, NZ commits to facilitate USD 20 billion investment

On 19 October 2026, Commerce Minister Piyush Goyal and New Zealand Trade Minister Todd McClay announced that the India–New Zealand Free Trade Agreement (FTA), signed on 27 April 2026, will enter into force on 20 October 2026 (Vijay Dashmi).

Summary

The India–New Zealand Free Trade Agreement (FTA) will enter into force on 20 October 2026, Union Commerce Minister Piyush Goyal and New Zealand's Trade and Investment Minister Todd McClay jointly announced on 19 October 2026. New Zealand has eliminated customs duties on all tariff lines covering Indian exports, and has committed to facilitate USD 20 billion of investment into India; sensitive products such as dairy, sugar and edible oils stay excluded from India's concessions. The agreement also gives Indians 5,000 Temporary Employment Entry visas and 1,000 Working Holiday visas a year, and first-ever dedicated access for AYUSH (traditional medicine) services. Negotiations were launched on 16 March 2025, concluded on 22 December 2025, and the FTA was signed on 27 April 2026.

Key facts

Agreement
India–New Zealand Free Trade Agreement (FTA)
Entry into force
20 October 2026 (Vijay Dashmi)
Announced
19 October 2026 by Piyush Goyal and Todd McClay
Negotiations
Launched 16 March 2025; concluded 22 December 2025
Signed
27 April 2026
Tariffs
NZ removes duties on all tariff lines for Indian exports (peak tariffs up to 10%)
Investment
NZ to facilitate USD 20 billion investment into India
Visas
5,000 Temporary Employment Entry + 1,000 Working Holiday visas a year
Excluded
Dairy, sugar, edible oils and key agricultural commodities
Trade target
NZ$7 billion by 2030

Practice MCQs 5 questions

Q1

On which date was the India–New Zealand Free Trade Agreement set to enter into force?

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Correct answer: A — 20 October 2026

PIB (19 October 2026): The India–New Zealand FTA will enter into force on 20 October 2026, on Vijay Dashmi.
Q2

Under the India–New Zealand FTA, New Zealand has committed to facilitate how much investment into India?

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Correct answer: B — USD 20 billion

PIB: New Zealand has committed to facilitate USD 20 billion of investment into India under the FTA.
Q3 Advanced

Consider the following statements about the India–New Zealand FTA: 1. Its negotiations were launched on 16 March 2025 and the agreement was signed on 27 April 2026. 2. Dairy products have been given duty concessions by India under the agreement. Which of the statements given above is/are correct?

Show answer

Correct answer: A — 1 only

PIB: Negotiations began on 16 March 2025 and the FTA was signed on 27 April 2026, but dairy, sugar, edible oils and key agricultural commodities remain excluded from concessions. So only statement 1 is correct.
Q4 Advanced

How many Temporary Employment Entry visas will New Zealand make available to Indians every year under the India–New Zealand FTA?

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Correct answer: C — 5,000

PIB: Indian youth and professionals will have a quota of 5,000 Temporary Employment Entry visas and 1,000 Working Holiday visas every year.
Q5 Advanced

Under the Kiwifruit Action Plan of the India–New Zealand FTA, Phase I Centres of Excellence sites have been identified at which places?

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Correct answer: D — Pfutsero (Nagaland) and Magra (Uttarakhand)

PIB: Under the Kiwifruit Action Plan, Phase I sites have been identified at Pfutsero in Nagaland and Magra in Uttarakhand.

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