New Delhi, October 18: India is moving from signing trade deals to actually implementing them. The government has notified the first set of tariff cuts under the India-New Zealand free trade agreement, just days before the deal comes into force on October 20.
- What gets cheaper from October 20
- What stays protected
- Why the timing matters
- The wider FTA assembly line
- What to watch next
- FAQs
- When does the India-New Zealand FTA come into force?
- Which New Zealand goods get tariff cuts?
- Is dairy covered by the tariff cuts?
- How big is trade between India and New Zealand?
- What does India gain from the FTA?
The notification lays out exactly which New Zealand goods will enter India at reduced or zero duty from Tuesday. Equally important, it spells out which sensitive sectors will stay protected. For exporters on both sides, the countdown to the first duty-free shipments has begun.
What gets cheaper from October 20
Under the notification issued by the finance ministry, Indian importers will get zero basic customs duty on sheep meat from New Zealand. Fish and wine get specific duty rates, while provisions have been made for manuka honey and kiwi fruit imports with varying duty treatments.
There is also a carefully calibrated opening for milk-derived proteins: an annual tariff rate quota (TRQ) of 200 tonnes for albumins, including milk-derived proteins, with an in-quota basic customs duty of 10 per cent.
Beyond food and beverages, the notification extends zero-BCD treatment to specified furniture and related products, including certain metal furniture, wooden bedroom furniture, aircraft seats and furniture parts, and lamps and lighting fittings.
What stays protected
The government has drawn a clear line around farm sensitivities. Dairy products and specified agricultural goods have been excluded from tariff liberalisation under the agreement, addressing the long-standing concern of India’s dairy farmers about cheap imports flooding in.
The TRQ provisions apply only within the prescribed quantities and are subject to the conditions laid out in the notification. Importers must also satisfy the applicable origin requirements to claim the preferential treatment, which means every shipment will have to prove it genuinely originates in New Zealand.
Why the timing matters
The India-New Zealand FTA, signed in April 2026, becomes operational on Tuesday. Bilateral trade in goods between the two countries stood at about $1.13 billion in 2025-26, and both sides are betting that duty cuts will move that number up.
The deal runs both ways. Indian exporters will get duty-free access to New Zealand for products including textiles, leather, footwear, engineering goods and processed agricultural products, sectors where Indian manufacturers have been keen to expand their footprint.
The NZ pact is part of a much bigger trade push. India’s merchandise exports have recorded growth across several major trading partners in the first half of the current financial year. September goods exports surged 23 per cent to $44.4 billion, while the trade deficit narrowed to $30.21 billion as imports rose only 8 per cent.
Exports to the United Kingdom rose to $7.32 billion during April to September from $6.83 billion a year earlier, helped by the India-UK trade agreement that came into force in July. Shipments to China rose to $11.41 billion from $8.39 billion, while exports to the European Union increased to $31.92 billion from $30.61 billion.
The wider FTA assembly line
New Delhi is negotiating on several fronts at once. India and Canada are targeting the conclusion of their proposed Comprehensive Economic Partnership Agreement by the end of 2026. The fifth round of negotiations was held in Ottawa from October 5 to 9, covering market access for goods and services, investment, rules of origin, intellectual property rights and trade remedies, with the next round planned for early November in Delhi.
The terms of reference for a preferential trade agreement with Mexico are expected to be signed this month, while India and the Maldives have completed one round of FTA talks and are in the middle of the second. An October 2026 Bloomberg Economics report estimated that India’s FTAs already in force, along with the EU and New Zealand deals, could add about $140 billion to GDP by 2035 and lift export volumes by 6.2 per cent.
What to watch next
- Importer uptake: how quickly Indian importers start using the TRQ and zero-duty lines after October 20.
- Price effects: whether cheaper New Zealand sheep meat and wine move retail prices.
- Exporter response: whether Indian textiles, leather and engineering firms ramp up shipments to New Zealand.
- Canada talks: whether the early-November round in Delhi keeps the end-2026 CEPA target on track.
FAQs
When does the India-New Zealand FTA come into force?
The agreement, signed in April 2026, becomes operational on October 20, 2026. India has already notified the first tariff cuts for imports from that date.
Which New Zealand goods get tariff cuts?
Sheep meat gets zero basic customs duty, fish and wine get specific rates, and manuka honey and kiwi fruit get varying duty treatments. Specified furniture items also get zero duty. A 200-tonne annual quota for milk-derived protein albumins gets a 10 per cent in-quota duty.
Is dairy covered by the tariff cuts?
No. Dairy products and specified agricultural goods are excluded from tariff liberalisation under the agreement.
How big is trade between India and New Zealand?
Bilateral trade in goods stood at about $1.13 billion in 2025-26, according to commerce ministry data.
What does India gain from the FTA?
Indian exporters get duty-free access to New Zealand for textiles, leather, footwear, engineering goods and processed agricultural products.
With the NZ deal going live on Tuesday, Informeia will track how importers and exporters respond in the first weeks of the new trade lane.
