India and New Zealand signed a Free Trade Agreement (FTA) on April 27, 2026, in New Delhi, marking a step towards strengthening bilateral trade and economic cooperation. The agreement was signed by Piyush Goyal and Todd McClay under the leadership of Narendra Modi and Christopher Luxon.

India’s current gem and jewellery exports to New Zealand stand at approximately $ 16.61 million. With zero-duty access under the agreement, exports are projected to increase to nearly $ 50 million over the next three years. Under the FTA, New Zealand has granted tariff elimination on all gems and jewellery imports from India from the date of entry into force. This is expected to enhance competitiveness for Indian exporters in the New Zealand market.

India, in turn, has extended tariff concessions on select gems and jewellery imports from New Zealand. These include phased elimination of customs duties on products such as pearls, diamonds, gemstones, and synthetic stones. As per India’s tariff schedule, certain items will see duty elimination over five or ten years, while some categories will move to reduced end-duty levels of 2.5% upon implementation.

However, several product categories have been excluded from tariff concessions by India. These include precious metals, precious metal jewellery, articles of jewellery, and imitation jewellery. The agreement also defines product-specific rules (PSR) for the sector, including origin criteria such as change in tariff heading (CTH/CTSH) and value addition thresholds for various categories of diamonds, gemstones, and jewellery.

The FTA is expected to provide improved market access and clearer trade frameworks for Indian manufacturers and exporters, particularly in the diamonds, coloured gemstones, and finished jewellery segments.