“The entry into force of the India-New Zealand FTA will translate this goal into concrete economic outcomes,” he told journalists.
High Commissioner @MuanpuiiSaiawi and Hon @toddmcclaymp formally exchanged Diplomatic Notes confirming the completion of respective domestic legal processes for the India–New Zealand FTA, paving the way for its implementation from 20 October 2026.
Elaborating on the potential avenues for investment, Mr. Goyal said: “There are many areas where they have cutting-edge technology and innovation.
New Zealand also has technological expertise in manufacturing of engineering and other goods, Mr. Goyal said.
Mr. Goyal observed that in several countries, including New Zealand, labour is scarce and expensive.
The Free Trade Agreement (FTA) between India and New Zealand that was ratified on Monday and comes into effect on October 20 aims to double bilateral trade to ₹35,000 crore in the “next four to five years”, according to Union Commerce Minister Piyush Goyal.
“The entry into force of the India-New Zealand FTA will translate this goal into concrete economic outcomes,” he told journalists.
The FTA is set to erase import-levies on all Indian goods being exported to New Zealand, while 95% of New Zealand’s exports to India will either be allowed tariff-free or at “sharply” reduced levies, according to New Zealand’s foreign trade office.
Dairy, agri products protected
Mr. Goyal insisted that India has safeguarded its sensitive sectors, such as dairy and agricultural produce, including onions, almonds, chickpeas, peas, artificial honey, and sugar, not granting Wellington any relaxation or concessions on these products in the agreement.
The deal will benefit India’s micro, medium and small enterprises, farmers, handloom artisans, and weavers, the Minister added.
Also read |India-New Zealand FTA, a modern trade partnership
India is New Zealand’s ninth largest export market, and the value of bilateral trade between the two countries stood at $1.3 billion in the fiscal year 2024-25.
New Zealand’s Minister of Trade and Investment Todd McClay emphasised the significance of the two countries getting the deal done at a time of global “uncertainty”, with escalating tariffs and trade barriers.
“It gives confidence to our business communities to grow, form relationships, and trade,” he said.
High Commissioner @MuanpuiiSaiawi and Hon @toddmcclaymp formally exchanged Diplomatic Notes confirming the completion of respective domestic legal processes for the India–New Zealand FTA, paving the way for its implementation from 20 October 2026. A significant milestone in… pic.twitter.com/8ja3ETXInU — India in New Zealand (@IndiainNZ) September 21, 2026
$20 billion FDI promised
Wellington has committed $20 billion worth of foreign direct investment into India as part of the deal.
Elaborating on the potential avenues for investment, Mr. Goyal said: “There are many areas where they have cutting-edge technology and innovation. Agriculture is one of their strengths in certain products.” He pointed to kiwi farming and apiculture as prime examples.
New Zealand also has technological expertise in manufacturing of engineering and other goods, Mr. Goyal said. “They could look to support our companies or invest and set up manufacturing in India to capture global markets,” he added.
Access to global markets
The Commerce Minister said that global investors are interested in setting up manufacturing in India not only for access to the large Indian market but also to help “seamlessly export” to about two-thirds of the global economy where India has preferential market access.
Mr. Goyal observed that in several countries, including New Zealand, labour is scarce and expensive. Manufacturing in India instead would be more economical.
“They are on the lookout for countries where they can export their technology to a trusted partner, where intellectual property is respected and would not be stolen,” he added.
‘Studying fine print of U.S. sanctions law’
Asked about India’s response to recent United States legislation imposing sanctions on countries buying Russian oil, Mr. Goyal said that the fine print of the law was being studied.
Responding to a query from The Hindu about progress on India’s trade deal with Chile, Mr. Goyal said that, following productive talks, “in the coming months, we will hear some good news.”
About the trade deal with Canada, the Union Minister noted that both sides have resolved to fast-track discussions. Indian negotiators are slated to visit the North American country for the fifth round of talks on October 5, he said.
