The India-New Zealand Free Trade Agreement (FTA) is set to take effect on October 20, paving the way for reduced import tariffs on various goods from New Zealand.The pact was signed by Piyush Goyal, the Minister of Commerce and Industry, along with Todd McClay, the Minister of Trade and Investment from New Zealand, on April 27.Which goods from New Zealand might see a price decrease?India has granted tariff reductions on approximately 70 percent of its tariff lines pertaining to goods from New Zealand. Nonetheless, various critical sectors, such as dairy and certain agricultural goods, have been excluded from the agreement.Tariffs on items like wood, wool, sheep meat, and raw hides will be removed right away. Duties on petroleum oils, vegetable oils, malt extract, and certain electrical and mechanical machinery will be gradually reduced over periods of three, five, seven, or ten years.The pact also includes tariff-rate quotas for items such as kiwi fruit, apples, Manuka honey and albumins.Under the FTA, India will permit the entry of up to 6,250 tonnes of kiwi fruit in the first year, increasing to 15,000 tonnes by the sixth year, with no duty, provided a minimum import price and certain seasonal conditions are met.The apple quota will start at 32,500 tonnes in the initial year and increase to 45,000 tonnes by the sixth year. Imports that fall within the quota will incur a 25 percent duty, as opposed to the current 50 percent duty, contingent upon a minimum import price and seasonal factors.Tariff relief will also be granted to Manuka honey. The existing 66 percent import duty will be reduced for designated amounts, with the tariff anticipated to decrease gradually over a five-year period.What is the significance of FTA for India?The agreement is expected to provide Indian exporters with duty-free entry to New Zealand on all tariff lines, possibly helping sectors like textiles, clothing, leather and shoes, jewels and ornaments, engineering products, and processed food.New Zealand has pledged to invest USD 20 billion in India during the upcoming 15 years. The two nations aim to increase bilateral trade twofold by 2030.With the FTA starting on October 20, Indian consumers may gradually notice increased availability and possibly lower prices for certain New Zealand products, especially kiwi fruit, apples, and Manuka honey, while sensitive areas like dairy continue to be safeguarded.