India and New Zealand signed a free trade agreement (FTA) on 27 April 2026 in New Delhi, with Commerce and Industry Minister Piyush Goyal and New Zealand Trade and Investment Minister Todd McClay leading the signing. The deal is set to open major opportunities for Indian industries including leather and footwear exporters.
Goyal said the agreement gives 100% duty free access to Indian exports across all tariff lines, boosting sectors like leather, footwear, textiles and engineering goods while improving export competitiveness and creating jobs in labour-intensive industries.
He added that the FTA aims to double bilateral trade, currently around $2.4 billion, and bring in $20 billion investment over the next 15 years.
Footwear and leather products set to benefit include leather and non leather footwear, finished leather, bags, belts and wallets, with tariffs dropping from 5% to zero.
The agreement also allows duty free inputs such as raw skins from New Zealand for the leather industry and wooden logs and metal scrap for other sectors, along with faster customs clearance within 24 to 48 hours through paperless systems to strengthen supply chains.
The ministers earlier held discussions in Agra on 26 April 2026 with industry leaders from leather, footwear, AYUSH, pharma, medical devices, light engineering and sports goods.
Goyal also launched the ‘Agra World Capital of Footwear’ campaign, celebrating the skills of artisans and women entrepreneurs and positioning the city as a global sourcing destination, employment engine and export powerhouse.
“Goods exported from India to New Zealand will go without any tax, creating significant opportunities, including for Agra’s leather industry and other sectors”
– Piyush Goyal, Commerce and Industry Minister, Government of India
Goyal said the agreement is India’s 9th FTA with 38 developed countries, covering nearly 65 to 70% of global GDP, and was negotiated from March 16, 2025 to December 22, 2025 in nine months.
Todd McClay called the agreement a once in a generation opportunity that will boost exports, create jobs and strengthen bilateral ties.
“India is a strategic priority for New Zealand”
– Todd McClay, Minister for Trade and Investment, New Zealand
Prime Minister Narendra Modi said the agreement marks a historic milestone and will strengthen economic ties, expand market access and support inclusive growth.
“This agreement is a gateway to a deeper, more enduring and people centred partnership between our two nations”
– Narendra Modi, Prime Minister of India
Council for Leather Exports – India (CLE) during the Indian International Leather Fair (IILF) 2026 press conference said that the Indian leather sector is targeting $50 billion turnover by FY2030, including $36 billion domestic and $14 billion exports.
Read: CLE Sets $50 Billion Turnover Target for Indian Leather and Footwear Industry by FY2029-30
According to CLE, the industry recorded $24.6 billion in FY2024-25, with $19 billion domestic and around $5.5 billion exports, while exports stood at $4.8 billion excluding non-leather footwear and are expected to remain between $5 billion and $5.5 billion in FY26.
The Council for Leather Exports said recent trade agreements with the USA, EU, UK, EFTA countries, New Zealand and Oman are expected to boost exports, attract investments and strengthen supply chains.
In FY2023-24, India’s leather, leather products and footwear exports to New Zealand stood at ₹55.13 crore (~$5.84 million at current exchange rate), contributing just 0.15% in value terms.
The agreement also includes talent mobility with 5,000 visa slots, post-study work rights up to 3 to 4 years, partnerships in agriculture through Centres of Excellence, faster pharma approvals through GMP and GCP recognition, and global promotion of AYUSH and traditional knowledge.
