Dear Valued Customer,
The New Zealand-India Free Trade Agreement (FTA) will officially enter into force on 20 October 2026, creating new opportunities for businesses trading between New Zealand and India. Under the agreement, 57% of New Zealand's current exports to India will become tariff-free immediately, increasing to 82% over time, with a further 13% receiving significant tariff reductions.
India is one of the world's fastest-growing economies and currently New Zealand's 11th largest export market. The FTA is expected to improve competitiveness for New Zealand exporters, reduce trade costs, and support stronger commercial relationships between the two countries.
What Businesses Should Do Now
- Review whether products qualify for preferential tariff treatment.
- Confirm tariff classifications and rules of origin.
- Understand documentation requirements.
- Review customs, regulatory, and labelling obligations.
- Engage with customs brokers, distributors, and supply chain partners ahead of implementation.
The agreement extends beyond tariff reductions and includes commitments relating to customs facilitation, services, investment, professional mobility, education, and economic cooperation. Indian Customs has committed to releasing goods within 48 hours, with an objective of releasing perishable and express shipments within 24 hours.
Helpful Resources
- MFAT NZ-India FTA Information: https://www.mfat.govt.nz/en/trade/free-trade-agreements/free-trade-agreements-concluded-but-not-in-force/new-zealand-india-free-trade-agreement
- MFAT Tariff Finder: https://www.tariff-finder.govt.nz/
- NZTE: What the NZ-India FTA Means for Exporters: https://my.nzte.govt.nz/article/20260220-what-the-nz-india-fta-means-for-exporters
- NZTE India Market Guide: https://my.nzte.govt.nz/article/20260203-india-market-guide
- NZTE India Programme: https://my.nzte.govt.nz/article/20260812-illuminate-india-programme
- Government Announcement: https://www.beehive.govt.nz/release/new-zealand-and-india-ratify-free-trade-agreement
- India Trade Services: https://www.hciwellington.gov.in/page/trade-services/
Kind regards
Your DACHSER-Team