India New Zealand FTA: 100 Percent Duty-Free Access for Indian Exports and Key Sectors That Benefit

Under the India-New Zealand Free Trade Agreement signed on April 27, 2026, New Zealand will provide zero-duty access for 100 percent of India's exports from the day the agreement comes into force. This means every Indian product exported to New Zealand, across all tariff lines, will enter the country without paying any customs duty. For Indian manufacturers and exporters, this eliminates tariffs of up to 10 percent that previously applied to key product categories. The comprehensive nature of this concession is significant: unlike many FTAs where duty elimination is partial or phased, New Zealand has offered complete tariff removal on Day 1 for all Indian goods.

Textiles, Apparel, and Leather

India's textile and apparel sector is among the primary beneficiaries. New Zealand will eliminate all tariffs on Indian textiles, garments, and fabrics from Day 1. India is already a significant supplier of textiles to the New Zealand market, and the removal of duties is expected to make Indian products more price-competitive against competitors from China, Bangladesh, and Vietnam, all of whom face their own tariff structures in NZ. The leather and footwear sector similarly benefits from full duty elimination. Indian leather goods, which are exported to over 100 countries, will now enter New Zealand without any tariff burden, potentially opening new retail and wholesale channels.

Gems, Jewellery, and Engineering Goods

India's gems and jewellery exports to New Zealand, which stood at approximately USD 16.6 million prior to the FTA, are projected to rise to nearly USD 50 million within three years of the agreement coming into force. The elimination of duties on precious stones, gold jewellery, and silver articles removes a cost barrier that had limited India's market share. Engineering goods and auto parts represent another significant opportunity. India's engineering exports have been growing globally, and zero-duty access to New Zealand creates a new destination for products ranging from industrial machinery to automotive components, electrical equipment, and iron and steel products.

Pharmaceuticals and Medical Devices

The pharmaceutical sector stands to gain not only from tariff elimination but also from regulatory facilitation. Under the FTA, New Zealand will recognise drug approvals from the US FDA and European regulatory agencies. This means Indian pharmaceutical companies that already have US or European approvals for their products can enter the New Zealand market without going through a separate, duplicative approval process. This reduces both the time and cost of market entry for Indian generic drugs and formulations. For the Indian pharmaceutical industry, which is the world's largest supplier of generic medicines, this regulatory recognition provision may prove more valuable than the tariff elimination alone.

Duty-Free Industrial Inputs from New Zealand

The benefit for Indian industry is not limited to what India exports. The FTA also provides zero-duty access for key industrial inputs that India imports from New Zealand, including wooden logs (particularly radiata pine, which is used extensively in Indian construction and furniture manufacturing), coking coal, and waste and scrap metals. By removing duties on these raw materials, the FTA lowers production costs for Indian manufacturers across multiple sectors. Cheaper timber inputs benefit the construction and furniture industries. Duty-free coking coal reduces costs for steel producers. And duty-free metal scrap benefits the recycling and secondary metals industry. This aspect of the FTA enhances the global competitiveness of Indian manufacturing, not just India's exports to New Zealand.

MSME and Start-Up Support

The FTA includes structured cooperation provisions for micro, small, and medium enterprises (MSMEs). These include enhanced access to trade-related information, export readiness programmes, and linkages with New Zealand's SME ecosystem. There is a specific focus on start-ups and enterprises owned by women and youth. For Indian MSMEs that have traditionally found it difficult to navigate the compliance requirements of international trade, these provisions lower the entry barriers. Combined with the zero-duty access, the FTA creates a realistic export pathway for smaller Indian businesses that may not have considered New Zealand as a destination market before.