India-New Zealand FTA kicks in: Here is what will become cheaper

Due to the FTA, the prices of some products from New Zealand will become cheaper in India.

Hyderabad: The India-New Zealand Free Trade Agreement (FTA), signed on April 27, came into effect on Tuesday, October 20, and it likely to bring down the prices of some products.

The FTA follows negotiations launched in 2010, stalled in 2015 and revived in March 2025. The pact becomes India’s 17th operational FTA.

What could get cheaper in India?

Due to the FTA, the prices of some products from New Zealand will become cheaper in India.

These products include wood, wool, sheep meat and leather from New Zealand, as import duties have been removed.

As import duties will be gradually reduced on New Zealand’s petroleum oils, vegetable oils, malt extract and some electrical and mechanical machinery too, these products are going to cost less in India.

Moreover, fruits like apples and kiwi, honey, and milk albumin are likely to see a drop in price in India, as the products will be charged lower duties.

Why India signed a trade pact with New Zealand

This is India’s seventh trade pact to come into force in the last five years. The others are agreements with the United Arab Emirates (UAE), Mauritius, the European Free Trade Association (EFTA) bloc, the UK, Oman and Australia.

According to experts, the sectors benefiting from the FTA are textiles and apparel, leather and footwear, engineering goods and auto components, gems and jewellery, agriculture and processed foods, pharmaceuticals and other manufacturing industries.

At a time of growing global trade uncertainty, the India-New Zealand FTA is a strong endorsement of open markets and predictable trade rules. Its target of doubling bilateral trade by 2030 sets an ambitious agenda for both countries.

Opportunities for Indian professionals

What makes this FTA particularly valuable is that it goes beyond goods to cover services, investment, skills and mobility, creating fresh opportunities for Indian professionals and businesses.

With 100 per cent of Indian exports gaining duty-free access to New Zealand from day one, the agreement gives Indian exporters a significant competitive advantage. Micro, Small, and Medium Enterprises (MSME) in textiles, leather, footwear and engineering goods are particularly well placed to benefit.

Greater opportunities for eligible skilled professionals and young people can further strengthen these connections.

(With inputs from PTI)