New Delhi, Oct 2026 : Commerce and Industry Minister Piyush Goyal on Monday said the India-New Zealand Free Trade Agreement (FTA), coming into force on Tuesday, will open new opportunities for Indian manufacturing and exports. Marking the milestone, Goyal flagged off the first-ever JCB machine manufactured in Pune, Maharashtra, for export to New Zealand, highlighting the growing global reach of Indian-made products.
In a post on X, Goyal said the agreement would usher in a new chapter in economic cooperation between the two countries, coinciding with Vijayadashami. He described the pact as a significant victory for both nations, with Indian exporters set to receive duty-free access to the New Zealand market.
The minister said the agreement would benefit micro, small and medium enterprises (MSMEs), farmers, women, youth and labour-intensive industries. It would also create new opportunities for Indian professionals while safeguarding the country's core economic interests.
Goyal said Indian farmers would gain wider market access for fruits, vegetables, spices and other agricultural products. Cooperation between the two countries would also focus on improving productivity, raising incomes and strengthening rural livelihoods. He stressed that sensitive sectors, including dairy, remained protected under the agreement to safeguard farmers' interests.
New Zealand has also committed to facilitating $20 billion in long-term investment into India. According to Goyal, the proposed investments could support manufacturing, infrastructure, services and innovation, while creating opportunities for businesses and employment.
The Trade Promotion Council of India (TPCI) described the FTA as a transformative milestone in India's trade policy. Under the agreement, Indian exports will receive immediate zero-duty access across all 8,284 tariff lines in New Zealand, giving sectors such as food processing, textiles and light engineering a competitive advantage in the Oceania market.
The pact aims to double bilateral trade to $5 billion within five years, alongside securing the long-term investment commitments from New Zealand.
TPCI said tariffs on a range of processed food products, including spices, seasonings, confectionery, bakery goods, packaged cereals, sauces, fruit juices and processed vegetables, would fall from rates of up to five per cent to zero from the first day of implementation.
The move is expected to improve the competitiveness of Indian value-added agricultural products and help exporters integrate more effectively into Indo-Pacific supply chains.
Meanwhile, New Zealand has initiated cooperation with India to improve productivity in the Indian dairy sector, even as the agreement retains protections for sensitive dairy products. The FTA is expected to strengthen bilateral economic ties and expand opportunities for Indian businesses in international markets.
