India-New Zealand FTA Comes Into Force; 100% Indian Exports Get Duty-Free Access, $20 Billion Investment Planned

The India-New Zealand Free Trade Agreement (FTA) has come into force, giving 100% of Indian exports duty-free access to New Zealand from day one and opening new routes for Indian workers, students and businesses.

The trade agreement took effect on October 20, 2026, with New Zealand eliminating customs duties across all tariff lines covering Indian exports. Peak tariffs of up to 10% have been removed, benefiting sectors including textiles and apparel, leather and footwear, gems and jewellery, engineering goods, automobiles and auto components, chemicals, pharmaceuticals, agricultural products and processed foods.

The agreement goes beyond tariffs. New Zealand has committed to promote $20 billion of private-sector investment into India over 15 years, while new employment routes allow up to 5,000 Indian workers at a time to work in New Zealand under two Temporary Employment Entry visa categories.

The two countries are also targeting a sharp increase in trade. India and New Zealand have set an aspirational goal of doubling two-way trade in goods and services to NZ$7 billion, or around ₹35,000 crore, by 2030.

The FTA was signed in New Delhi on April 27, 2026, after negotiations were concluded in December 2025.

India-New Zealand FTA Details

For Indian exporters, the biggest immediate change is the removal of New Zealand customs duties across all tariff lines.

Textiles, apparel, leather, footwear, gems and jewellery, engineering goods, automobiles and auto components, chemicals, pharmaceuticals and processed foods are among the sectors expected to benefit.

Indian manufacturers will also get duty-free access to inputs including wooden logs, coking coal and metal waste and scrap.

The pharmaceutical and medical-device industries get another benefit under the agreement. New Zealand will recognise inspection approvals from regulators including the US Food and Drug Administration, European Medicines Agency, UK Medicines and Healthcare products Regulatory Agency and Health Canada, reducing regulatory duplication for eligible Indian exporters.

India’s services sector also gets greater access to the New Zealand market. The agreement covers market access across around 118 services sectors, including IT, professional services, construction, tourism and audio-visual services, while Most-Favoured-Nation commitments apply across around 139 sub-sectors.

Bilateral merchandise trade between India and New Zealand stood at around $1.1 billion in FY26, according to the Indian government.

India-New Zealand FTA: New Work Visa Routes For Indians

The agreement has also brought two new Temporary Employment Entry visa routes into effect for Indian citizens.

Together, the routes allow up to 5,000 visa holders at any one time and are valid for stays of up to three years, according to Immigration New Zealand.

Of these, up to 4,400 places are available under the India Skilled Work Visa for workers in identified shortage occupations.

The allocation includes up to 1,000 places for software and other ICT roles, 1,000 for engineering roles, 900 for registered nurses, 700 for construction and building project managers, 500 for teachers and 300 for physiotherapists.

Another 600 places are available under the India Iconic Work Visa. These are split between 250 Indian chefs, 200 AYUSH practitioners, 100 yoga instructors and 50 music teachers.

Applicants still need a qualifying full-time job offer from an accredited New Zealand employer and must meet the applicable qualification, experience, English language, health and character requirements.

The three-year temporary employment visas do not provide a direct pathway to residence.

The FTA also provides for a new working-holiday scheme for Indian citizens aged 18 to 30. It will offer up to 1,000 places a year and allow successful applicants to spend up to 12 months in New Zealand.

Unlike the new skilled-work routes, however, the working-holiday programme is not available immediately. Immigration New Zealand says it will be introduced within two years of the FTA taking effect.

Changes are also coming for Indian students. From November 16, 2026, Indian graduates with New Zealand PhDs will become eligible for post-study work visas of up to four years, compared with three years currently.

India-New Zealand FTA Includes $20 Billion Investment Commitment

New Zealand has committed to promote an increase of $20 billion in private-sector investment into India over 15 years.

The investment push is expected to cover areas including agriculture, manufacturing, infrastructure and start-ups. India will establish a dedicated New Zealand Investment Desk to assist investors through the investment process.

The $20 billion figure is an investment-promotion commitment rather than $20 billion of investment being transferred immediately under the FTA.

On the other side of the agreement, India has opened preferential access for 95% of New Zealand’s current exports over time. Around 57% of New Zealand exports to India became tariff-free immediately when the agreement took effect, rising to 82% over time. Another 13% of current exports will receive tariff reductions.

Tariffs have been removed immediately on products including sheep meat, wool and coal, while more than 95% of New Zealand’s forestry and wood exports receive immediate duty-free treatment.

India has also offered preferential access for products including apples and kiwifruit, while tariffs on New Zealand wine will be reduced by 66% to 83% over 10 years, depending on the product.

Sensitive Indian sectors have been protected. The government said dairy, sugar, edible oils and key agricultural products remain excluded from concessions.

Commerce and Industry Minister Piyush Goyal said the agreement would give fresh momentum to trade, technology and investment ties between the two countries.

“The India-New Zealand FTA would provide fresh momentum to the bilateral partnership, create greater synergies between the two economies, enable economies of scale and contribute to enhancing overall competitiveness,” Goyal said.

The agreement is now in force, meaning eligible businesses can begin using its tariff preferences rather than waiting for another implementation date.

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