India and New Zealand Forge Historic Free Trade Agreement to Boost Trade

India and New Zealand are poised to sign a significant Free Trade Agreement aimed at doubling bilateral trade and providing Indian companies with duty-free access to New Zealand's markets. This historic pact is expected to attract $20 billion in investments over the next 15 years, with Agra's leather industry poised to benefit greatly. Union Minister Piyush Goyal highlighted the opportunities this agreement will create for local artisans and MSMEs. The FTA will eliminate tariffs on 100% of Indian exports, enhancing trade relations between the two nations and promoting Agra as a global footwear capital.

By Narendra Chaudhary Apr 27, 2026, 10:49 IST

Historic Free Trade Agreement Between India and New Zealand

India and New Zealand are on the verge of finalizing a landmark Free Trade Agreement (FTA) that promises significant advantages for local businesses. This agreement aims to double the trade volume between the two nations and grant Indian companies duty-free access to New Zealand's markets, alongside attracting $20 billion in investments over the next 15 years. A pivotal aspect of this FTA is the elimination of tariffs on 100% of Indian exports, which will greatly benefit regions like Agra in Uttar Pradesh, known for its leather products, including high-quality shoes, jackets, bags, and belts. Union Minister for Commerce and Industry, Piyush Goyal, emphasized that this agreement will create substantial opportunities for leather exporters in Agra, stating, "Goods exported from India to New Zealand will be tax-free, significantly benefiting Agra's leather sector and other industries." He also noted that the pact aims to enhance bilateral trade, which currently stands at approximately USD 2.4 billion.

On Sunday, Goyal introduced the 'Agra: World Capital of Footwear' branding initiative in Agra, highlighting the skills of local artisans and women entrepreneurs. He mentioned that around 70% of Indian goods will enter New Zealand without tariffs, paving the way for new prospects for MSMEs and traditional sectors. "This will open up fresh avenues for Agra's leather industry, as well as for Uttar Pradesh's handloom and handicrafts sectors, benefiting our carpenters and handcarvers," he added.

Agra: The Leather Manufacturing Hub

Agra stands as the largest footwear manufacturing center in India, fulfilling approximately 65% of the domestic demand and accounting for 28% of the country's total footwear exports. The city is home to over 5,000 manufacturing units, producing around 300,000 pairs of footwear daily. The Uttar Pradesh government has committed Rs 8,000 crore to modernize this sector. However, the leather export industry faced challenges due to tariffs imposed by the United States under former President Donald Trump, which disrupted Agra's export economy, known for its footwear and handicrafts.

In response, the Uttar Pradesh government launched the One District One Product (ODOP) initiative to enhance the global recognition of Agra's leather industry.

Strengthening India-New Zealand Trade Relations

New Zealand ranks as India's second-largest trading partner in Oceania, with a GDP of $49,380, making it one of the wealthier economies in the region. Currently, New Zealand imposes tariffs of around 10% on approximately 450 key Indian export categories, including textiles, leather, ceramics, carpets, automobiles, and auto components. The average tariff is expected to drop to zero by 2025 under the FTA.

According to government sources, India has proposed market access for 70.03% of tariff lines while excluding 29.97%. The agreement includes immediate tariff elimination for 30% of these lines, covering products like wood, wool, sheep meat, and raw hides. Additionally, 35.60% of tariffs will be phased out over periods of 3, 5, 7, and 10 years, affecting items such as petroleum oil, malt extract, vegetable oils, and selected machinery.