Business News | India-New Zealand FTA to Take Effect October 20; Trade Agreement with Canada by Year-end

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Key takeaways

The India-New Zealand Free Trade Agreement will take effect on October 20.
India and Canada are targeting the end of 2026 to conclude CEPA negotiations.
India's merchandise exports have grown across key trading partners including the UK, China, and the EU.

The India-New Zealand Free Trade Agreement (FTA) will come into force on October 20, while India and Canada are targeting the conclusion of negotiations for their proposed trade agreement by the end of 2026, as India seeks to expand market access for exporters amid global trade uncertainties.

According to a presentation by the Ministry of Commerce and Industry on Thursday, India and Canada are aiming to conclude negotiations for their proposed Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026.

The fifth round of negotiations between the two countries was held in Ottawa from October 5 to 9, with discussions covering market access for goods and services, investment, rules of origin, intellectual property rights and trade remedies. The next round of talks is planned for early November in New Delhi.

The proposed agreement is expected to strengthen economic ties between the two countries by reducing trade barriers and improving market access for businesses.

Meanwhile, the India-New Zealand FTA, signed in April 2026, will become operational on October 20. The agreement will provide duty-free access to Indian exports entering New Zealand, creating opportunities for sectors such as textiles, leather, footwear, engineering goods and processed agricultural products.

These developments come as India's merchandise exports have recorded growth across several major trading partners during the first half of the current financial year.

According to the Commerce Ministry's trade data, India's exports to the United Kingdom increased to USD 7.32 billion during April–September 2026, from USD 6.83 billion a year earlier. The India-UK trade agreement came into force in July this year.

Exports to China also rose to USD 11.41 billion from USD 8.39 billion, while shipments to the European Union increased to USD 31.92 billion from USD 30.61 billion.

India has earlier concluded FTA negotiations with the European Union, although the agreement is yet to enter into force.

The ministry's presentation further showed that negotiations are underway with several other trading partners, including the United States, Israel, Chile and Peru.

India is also pursuing reviews or upgrades of existing trade agreements with Australia, ASEAN, South Korea and Sri Lanka.

The ongoing negotiations and implementation of new agreements are part of India's efforts to diversify export destinations and secure better market access for domestic businesses amid changing global tariff policies.

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