New Zealand India FTA: From Agreement to Business
The New Zealand India Free Trade Agreement will enter into force on 20 October 2026. For exporters, investors and service providers, the immediate question is how to turn improved market access into commercial results.
That question was at the centre of a standing-room-only fireside conversation hosted by the India New Zealand Business Council at BNZ Place in Auckland on 23 September.
The event brought together Hon Todd McClay, Minister for Trade and Investment, and H.E. Ms Muanpuii Saiawi, High Commissioner of India to New Zealand.
It was also the High Commissioner’s first engagement with INZBC members in Auckland.
The discussion, moderated by INZBC Chief Executive Sunil Kaushal, focused on what must happen after the FTA. It considered how businesses can use the agreement, develop trusted partnerships and build a stronger commercial relationship between the two countries.
The FTA creates new opportunities
The agreement provides a stronger framework for trade between New Zealand and India.
From the day it enters into force, almost 57 per cent of New Zealand’s current exports to India will be tariff-free. This will increase to 82 per cent when the agreement is fully implemented. A further 13 per cent of exports will benefit from significant tariff reductions.
The agreement will eliminate or reduce tariffs on 95 per cent of New Zealand’s current exports to India. Estimated tariff savings begin at $43 million in the first year and increase to $62 million when fully implemented, based on current trade levels.
The benefits extend beyond tariffs. The FTA provides greater certainty for businesses and supports opportunities across goods, services, technology, education, investment and professional expertise.
India must be approached market by market
One of the central themes of the evening was the need for New Zealand businesses to understand the scale and diversity of India.
India cannot be treated as one uniform national market. Its states differ in their economies, industries, regulations, consumer preferences and business cultures.
A successful market strategy should identify the right state, city, sector and commercial partner. This is especially important for small and medium-sized New Zealand businesses with limited resources.
Businesses should focus on the part of India where their products, services and expertise have the strongest fit. A targeted approach is more practical than attempting to enter the whole country at once.
India can also be a global business partner
The opportunity is not limited to selling products and services within India.
Indian businesses have extensive networks across Asia, the Middle East, Africa, Europe and North America. Partnerships with Indian companies can give New Zealand businesses access to skills, capital, technology, manufacturing capacity and international distribution networks.
New Zealand can provide Indian businesses with trusted partnerships, specialist expertise and a base for engagement with the Pacific.
This two-way opportunity should shape the next phase of the commercial relationship.
Government support remains important
Signing and ratifying the agreement are major achievements. They do not complete the government’s role.
Businesses will need clear information about tariff schedules, rules of origin, customs requirements, standards and regulatory processes. They will also need market intelligence, introductions and support to identify credible partners.
Government agencies, industry organisations and INZBC must work together to ensure that businesses of all sizes can use the agreement.
This support will be particularly important for medium-sized businesses. Many have the expertise and ambition to enter India but may not have the resources of large exporters.
What businesses should do now?
Companies considering India should begin preparing before the FTA enters into force.
Practical steps include:
• Become an INZBC Member
• Confirm whether your goods or services are covered by the agreement.
• Check the tariff classification and implementation schedule for your products.
• Review the applicable rules of origin and supporting documentation.
• Understand Indian customs, labelling, registration and regulatory requirements.
• Select the state, city and customer group that best fits your offer.
• Identify credible distributors, customers, investors or joint-venture partners.
• Review pricing, payment terms, foreign exchange and trade-finance arrangements.
• Prepare a long-term market plan rather than relying on one-off transactions.
INZBC’s role in the next phase
INZBC Chair Bharat Chawla said the turnout demonstrated the level of business interest in the next stage of the relationship.
“The standing room only attendance showed that businesses are ready to move from discussing the agreement to acting on it. The FTA gives us a stronger platform, but commercial results will depend on preparation, trusted partnerships and sustained engagement. INZBC will help businesses connect with the right people and turn this opportunity into long-term value.”
INZBC Chief Executive Sunil Kaushal said implementation must now become the priority.
“Government has opened the door. Business must now walk through it. Our focus will be on helping companies understand the agreement, identify practical opportunities and build relationships that can succeed over time. This is especially important for small and medium sized businesses that have the capability to work with India but need support taking the first step.”
INZBC will continue working with its members, partners and government agencies to support FTA education, market preparation, commercial connections and two-way investment.
From agreement to business
The New Zealand India FTA is an important milestone, but the agreement itself will not create commercial outcomes.
Those outcomes will come from businesses that prepare early, understand their market and invest in strong relationships.
The next phase of the India New Zealand relationship is about implementation. It is about converting access into trade, investment, partnerships and measurable results.
