India-New Zealand FTA takes effect

The India–New Zealand FTA came into force on 20 October 2026, after being signed on 27 April 2026.It provides zero-duty access to 100% of Indian exports to New Zealand from Day One, while expanding cooperation in investment, services and skilled mobility.

Key Features of the FTA

• Indian exports: New Zealand has eliminated duties on 100% of its tariff lines for Indian goods.
• India’s offer: India has provided market access on about 70% of tariff lines, while keeping nearly 30% excluded to protect sensitive sectors. Investment: New Zealand has committed to facilitate $20 billion investment in India over 15 years.
• Services: New Zealand has made market-access commitments across about 118 services sectors/sub-sectors.
• Trade facilitation: The agreement uses mechanisms such as Tariff Rate Quotas (TRQs) and electronic exchange of origin data.

Benefits for Indian Exports

• Labour-intensive sectors: Textiles, apparel, leather and footwear gain duty-free market access.
• Manufacturing: Engineering goods and processed products can become more competitive.
• Pharmaceuticals: Regulatory cooperation seeks to reduce duplicative inspections and ease market entry for medicines and medical devices.
• Agriculture: Cooperation includes Action Plans and proposed Centres of Excellence for kiwifruit, apples and honey.

Protection of Sensitive Indian Sectors

• India has excluded around 29.97% of tariff lines from concessions.
• Major exclusions include:
  • Dairy: milk, cream, whey, yoghurt, cheese and butter.
  • Agriculture: onions, chana, peas, corn and almonds.
  • Sugar and artificial honey.
  • Selected animal products and vegetable fats/oils.
• Limited preferential access through TRQs applies to products such as apples, kiwifruit, Manuka honey and albumins.

What is a Tariff Rate Quota (TRQ)?

• A TRQ permits a specified quantity of imports at a lower preferential tariff.
• Imports beyond the quota face a higher applicable tariff.
• It balances market access with protection of domestic producers.

Student Mobility

• No numerical cap has been placed on Indian students under the FTA framework.
• Students are guaranteed at least 20 hours of work per week during study.
• Post-study work rights extend up to:
  • 3 years for eligible STEM Bachelor’s and Master’s graduates.
  • 4 years for Doctorate holders.

Temporary Employment Entry Visa

• A dedicated Temporary Employment Entry (TEE) pathway has been created for Indian professionals.
• Quota: Up to 5,000 visas at any given time.
• Stay: Up to 3 years.
• Covers sectors such as IT, engineering, healthcare, education and construction, along with AYUSH practitioners, yoga instructors, Indian chefs and music teachers.
• The FTA also provides 1,000 Working Holiday visas annually for young Indians.

Agricultural Partnership

• Cooperation extends beyond tariff concessions to technology, training and productivity improvement.
• New Zealand will provide technical assistance for Centres of Excellence in kiwifruit, apples and honey.
• Cooperation also extends to horticulture, forestry, livestock and fisheries.

Key Challenges

• Indian exporters must comply with New Zealand’s quality, sanitary and certification standards.
• MSMEs need greater awareness of rules of origin and tariff benefits.
• The $20-billion investment commitment must translate into actual projects and capital flows.
• Sensitive agricultural sectors require continued productivity and market-support measures.
• Professional mobility will still depend on relevant qualification, licensing and visa conditions.

The FTA gives India comprehensive duty-free access to the New Zealand market while protecting sensitive domestic sectors, and significantly expands opportunities in services, investment, education and skilled mobility.

Correction to the supplied material: India has not reduced tariffs on 95% of New Zealand imports. The official agreement provides market access on about 70% of India’s tariff lines, with roughly 30% excluded.