India and New Zealand set to activate free trade pact by late October
India and New Zealand plan to bring their free-trade agreement into effect in the latter half of October, with the exact date to be announced.
Rajesh Agrawal announced that the free-trade agreement between India and New Zealand, signed on April 27, is expected to be implemented in the latter half of October 2026, with an official launch date to be confirmed, potentially as early as October 19. The pact eliminates tariffs of up to 10 percent on Indian goods such as ceramics, carpets, automobiles and components, while granting New Zealand duty-free access to the Indian market.
Trade between the two nations totaled almost NZ$3.95 billion in the year ending December 2025, with New Zealand exporting NZ$2.03 billion of goods and services, notably travel, forestry and horticulture products. India’s services exports to New Zealand grew 13 percent in 2024 to US$634 million, and merchandise trade has risen steadily over the past decade. New Zealand also pledged a US$20 billion investment in India over 15 years and secured most-favoured-nation treatment for India in 139 sectors. The agreement includes a student-mobility annex that allows Indian students to work up to 20 hours weekly while studying, regardless of future policy changes.
Why it matters
The deal will deepen economic ties, lower trade barriers and boost investment and student exchange between India and New Zealand.
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