Politics · India Bureau
India, New Zealand launch free trade pact targeting Rs 35,000 crore commerce
A comprehensive free trade agreement between India and New Zealand takes effect on October 20, removing tariff barriers for key Indian exports including apparel and leather goods. The two nations have set an ambitious target of Rs 35,000 crore in bilateral trade by 2030.
LSN India ·
The India-New Zealand Free Trade Agreement enters into force on October 20, marking a significant milestone in the two countries' economic engagement. The pact eliminates import duties on a range of Indian products, particularly benefiting the apparel and leather sectors that have long faced tariff obstacles in the New Zealand market.
Under the agreement's framework, Indian exporters of leather products, garments, and related goods will gain zero-duty access to New Zealand, creating new commercial opportunities for domestic manufacturers. The deal also encompasses provisions for services trade, investment flows, and technical cooperation between the nations.
New Zealand has signalled its commitment to the partnership with pledges to invest $20 billion across Indian industries. This financial commitment is expected to accelerate infrastructure development, manufacturing capabilities, and knowledge transfer in priority sectors.
Both countries have established an ambitious bilateral trade target of Rs 35,000 crore by 2030, reflecting confidence in the growth potential of their economic partnership. Current trade volumes between India and New Zealand remain modest, making the FTA a strategic tool to unlock untapped commercial possibilities and deepen economic ties in the Asia-Pacific region.
Photo: Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon at bilateral talks in Auckland, 11 July 2026. Prime Minister's Office, Government of India, via Wikimedia Commons (GODL-India).