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India-New Zealand FTA in force: what exporters need to know

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The India-New Zealand FTA took effect on 20 Oct 2026: zero NZ duty on Indian goods, rules of origin, proof of origin and next steps.

Short answer: the India–New Zealand Free Trade Agreement (FTA) came into force on 20 October 2026. From that day, New Zealand removed customs duty on all its tariff lines for goods that originate in India. Before the deal, Indian goods faced duties of up to 10%. To get zero duty, your goods must meet the FTA's rules of origin and travel with valid proof of origin. Status holders can self-certify, and other exporters use a certificate of origin.

This guide explains what changed, which Indian sectors gain most, what India opened in return, and the practical steps to claim zero duty on your next shipment to New Zealand.

Key dates

  • 16 March 2025: negotiations launched.
  • 22 December 2025: negotiations concluded.
  • 27 April 2026: agreement signed.
  • 20 October 2026: agreement entered into force.

These dates come from the Press Information Bureau release of 19 October 2026 and New Zealand's Ministry of Foreign Affairs and Trade (MFAT), which confirms the FTA is now in force.

What India's exporters get

The Department of Commerce FAQ on the agreement says New Zealand has offered 100% duty-free market access from the day of entry into force, covering all tariff lines and all of India's current exports to New Zealand. It also calls this the first Indian FTA where India gets full duty-free access across all tariff lines from day one.

The same FAQ highlights several sectors:

  • Textiles and clothing: zero duty on all tariff lines in the sector, which previously faced tariffs of up to 10%. This covers fibre, yarns, fabrics, garments, made-ups, carpets and home textiles. The FAQ puts New Zealand's textile and clothing imports at around USD 1.90 billion in 2024-25.
  • Leather and footwear: duty removed on all tariff lines, including finished leather, footwear, bags, belts and wallets. Pre-FTA tariffs were up to 10%.
  • Pharmaceuticals: duties of up to 5% removed. New Zealand will also fast-track approvals by accepting GMP and GCP inspection reports from comparable regulators such as the UK MHRA, US FDA, Health Canada and EU EMA.
  • Engineering goods: tariffs of up to 10% removed across a wide range of products.
  • Agriculture and processed food: tariffs of up to 5% removed on most agricultural products, including fruits and vegetables, coffee, tea, spices, cereals and processed foods. A Mutual Recognition Agreement on organics is expected to help organic exporters.

On services, the PIB release says New Zealand has given market access in around 118 sectors. It also includes an annual quota of 5,000 Temporary Employment Entry visas and 1,000 Working Holiday visas for Indians.

What India opened in return

India's offer is more limited. According to the Department of Commerce FAQ, India has given tariff concessions on 70.03% of its tariff lines, covering about 95% of current bilateral trade value. The remaining 29.97% are in an exclusion list.

The exclusion list includes dairy products, sugar, edible oils, many vegetable products (such as onions, chana, peas and almonds), gems and jewellery, and copper and aluminium articles. Apples, kiwifruit, Mānuka honey and albumins come in only under tariff-rate quotas, with minimum import prices and other safeguards.

For Indian importers, this means a duty cut on a New Zealand product depends on whether that line is in India's concession schedule. Check the product line before you price a deal.

Rules of origin: the part that decides whether you pay zero

Zero duty is only for goods that "originate" in India under the agreement. The Department of Commerce FAQ sets out the main points:

  • Product-specific rules apply at the 6-digit HS level. They set the exact test your product must pass, for example a change in tariff classification or a minimum value content.
  • Qualifying value content can be calculated by the build-up or build-down method.
  • Bilateral cumulation is allowed. Originating materials from New Zealand used in your product can count as Indian. Cumulation with third countries is not allowed.
  • Substantial processing is required. Goods from another country that only pass through India, or get minor work, will not qualify.
  • Verification: customs authorities can ask for information, visit the exporter's premises, deny preference for non-compliance, and temporarily suspend preference where misuse is suspected.

Before your first shipment, find your product's HS code and the product-specific rule that applies to it. Then keep cost sheets and supplier declarations that prove you meet it. Our FTA Advantage Playbook explains how origin tests work in general.

Proof of origin: certificate or self-certification

Under the agreement:

  • Status holders can self-declare origin from the date of entry into force. The FAQ says this should cut cost and processing time, especially for frequent, time-sensitive shipments.
  • Other exporters use a certificate of origin in the format set out in the Rules of Origin chapter. It must state the origin criterion met, the description of goods and the 6-digit HS code.

DGFT runs a common digital platform for preferential and non-preferential certificates of origin (FTP 2023 para 1.15), linked from the Trade Connect portal. Check there for when New Zealand is available as a destination, and which agencies issue certificates for it.

Step-by-step: shipping to New Zealand under the FTA

  1. Confirm your HS code. Use the 6-digit code your New Zealand importer will declare, and your 8-digit Indian ITC(HS) code for your own shipping bill.
  2. Read the product-specific rule for that HS line in the agreement text, published by MFAT and the Department of Commerce.
  3. Check you pass it. Work out your qualifying value content or tariff-shift test, and keep the working on file.
  4. Get proof of origin. Self-certify if you are a status holder, or apply for a certificate of origin on DGFT's platform.
  5. Tell your buyer early. The importer claims the preference at New Zealand customs, so share the origin document with the commercial documents.
  6. Keep records. Be ready for a verification request, which can arrive after the goods have cleared.

Where the opportunities are

MFAT puts two-way India–New Zealand trade at about NZ$3.95 billion a year. That is small compared with India's larger markets, but the zero-duty offer removes a cost gap with suppliers from countries that already had FTAs with New Zealand. The PIB release says both sides aim to double bilateral trade in goods and services to NZ$7 billion by 2030.

Sectors named in official material include textiles and apparel, leather and footwear, engineering goods, pharmaceuticals, chemicals, auto components, and agricultural and processed foods.

Looking for importers in New Zealand? Start with the Trade Connect "Buyer Connect" service and the Indian mission in Wellington. See our Find Your First Buyer guide, or our buyer-leads page.

What to watch next

  • Implementing notifications in India. Look for customs notifications for India's concessions and DGFT trade notices on certificates of origin.
  • Guidance from New Zealand Customs on how importers claim the preference.
  • Tariff-rate quota operation for apples, kiwifruit and Mānuka honey, which official material links to agricultural cooperation action plans.

Frequently asked questions

When did the India–New Zealand FTA come into force?

On 20 October 2026. It was signed on 27 April 2026, after negotiations that ran from 16 March 2025 to 22 December 2025.

Do all Indian goods enter New Zealand duty-free now?

New Zealand has removed duty on all its tariff lines for goods that originate in India. Your goods must meet the rules of origin and carry valid proof of origin to get zero duty.

What was the duty before the FTA?

Official material says Indian exporters faced duties of up to 10% in New Zealand on sectors such as textiles, leather, footwear and engineering goods, and up to 5% on pharmaceuticals and most agricultural products.

Can I self-certify origin for New Zealand?

Status holders can self-declare origin from the date of entry into force. Other exporters need a certificate of origin in the prescribed format, showing the origin criterion and the 6-digit HS code.

Which products did India keep out of the deal?

India's exclusion list covers 29.97% of its tariff lines. It includes dairy, sugar, edible oils, many vegetable products, gems and jewellery, and copper and aluminium articles. Apples, kiwifruit, Mānuka honey and albumins have tariff-rate quotas.

Educational information only, not legal or tax advice. Check the agreement text, your product-specific rule and the latest DGFT and customs notifications before you ship.

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Sources

Educational information only, not legal, tax or financial advice. Always verify current rules on DGFT, ICEGATE and RBI portals before acting.