Trade Promotion Council of India (TPCI) Hails Implementation of Historic India–New Zealand FTA, Starting October 20, 2026

Trade Promotion Council of India

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Trade Promotion Council of India (TPCI) Hails Implementation of Historic India–New Zealand FTA, Starting October 20, 2026

–         A Watershed Moment for Exports of Indian Agri-Food, Textiles & apparel, Leather & footwear, Engineering goods, mainly promoting labour-intensive sectors and MSMEs, and Value-Chain Integration

New Delhi | 30th September 2026: The Trade Promotion Council of India (TPCI) warmly welcomes the official entry into force of the landmark India–New Zealand Free Trade Agreement (FTA), taking effect on October 20 between the two complementary economies. Delivering 100% duty-free market access for all 8,284 tariff lines covering Indian exports, the pact sets the stage to double bilateral trade to $5 billion within five years and secure $20 billion in long-term foreign investment commitments into India.

Commenting on the India- New Zealand agreement, Shri Mohit Singla, Chairman, TPCI, said, “The October 20 implementation marks a transformative milestone for Indian trade policy. By securing immediate 100% zero-duty access across all product lines, Indian exporters—particularly in food processing, textiles, and light engineering—gain an unparalleled competitive edge in Oceania. TPCI remains fully committed to assisting MSMEs and agri-food businesses to leverage these tariff concessions, meet technical standards, and build long-term buyer relationships in New Zealand.”

Speaking on the implementation, TPCI highlighted the strategic advantages across core sectors:

Key Highlights & Sectoral Impact

Strong Impulse for Agri-Food & Processed Food Exports

• Duty Elimination (5% to 0%): Tariffs on processed foods, spices, seasonings, confectionery, bakery goods, packaged cereals, sauces, fruit juices, and processed vegetables drop from up to 5% directly to zero on day 1.
• MRA in organics: Agreed to enter into an MRA in organics based on mutually accepted third-country standards.
• Value-Chain Integration: Duty-free access opens significant room for Indian value-added agri-products to integrate into Indo-Pacific supply chains.
• Agri-Tech Collaboration: Joint action plans on kiwifruit, apples, and honey will facilitate technology transfer, boosting productivity and supporting Indian farm incomes while protecting sensitive domestic sectors like dairy through balanced safeguards. New Zealand side has also initiated co-operation & collaboration to improve productivity in the Indian dairy sector.

Big Win for Labor-Intensive Sectors & MSMEs

• Textiles, Apparel, Leather, and Footwear: Elimination of 2%–10% tariffs makes Indian apparel, finished leather, and footwear immediately price-competitive against regional peers.
• Engineering Goods & Plastics: Machinery, auto components, tools, and packaging items enter New Zealand duty-free, driving growth for MSME export hubs across the country.

Streamlined Regulatory Access for Pharma & Healthcare

• Reduced Compliance Burden: Mutual recognition and acceptance of inspection reports from comparable regulators (US FDA, EMA, Health Canada) drastically reduce duplicative trials and speed up market entry for Indian generic medicines, APIs, medical devices, and AYUSH products.
• First-Ever AYUSH Dedicated Annex: A landmark bilateral provision establishing formal market pathways for traditional medicine.

Services Expansion & Talent Mobility

• Expansion across 118 service sectors (including IT, healthcare, and engineering) combined with 5,000 annual skilled worker visas and generous post-study work rights will significantly expand opportunities for Indian talent.
• Significant Indian diaspora (around 6% of New Zealand population) can also be a catalyst for further deeper economic integration.

To maximise trade gains from Day 1, TPCI will conduct specialised exporter awareness sessions, trade delegations, and targeted buyer-seller meets focused on agri-food processing and MSME manufacturing clusters, while also facilitating tie-ups with INZBC and QualityNZ, as well as major retailers in New Zealand.

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