Representative image. Photo: GPS 56 from New Zealand, CC BY 2.0, via Wikimedia Commons
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Updated
Why it matters
Indian exporters of clothes, leather, jewellery, engineering goods and medicines can now sell into New Zealand without paying duty. Skilled workers and students get clearer routes to work there. Indian dairy farmers are protected because milk products are left out of the deal.
The India New Zealand FTA came into force on 20 October 2026, the day of Dussehra. From that day, every product India sells to New Zealand enters without import duty, and skilled Indian workers have a new visa route into the country. India, in return, has cut duties on most New Zealand goods while keeping dairy and other sensitive farm products out of the deal.
Commerce minister Piyush Goyal and New Zealand trade minister Todd McClay signed the agreement in New Delhi on 27 April 2026, after about nine months of talks, The Tribune reported. New Zealand’s Parliament passed the law needed to bring it into effect on 16 September.
What the India New Zealand FTA changes for exporters
Under the India New Zealand FTA, New Zealand has removed tariffs on all Indian goods. Some products had faced duties of up to 10% before, Business Today reported. A garment exporter shipping $10,000 worth of goods that carried a 10% duty would now save $1,000 on that consignment.
The sectors expected to gain most are textiles and clothing, leather and footwear, gems and jewellery, engineering goods, pharmaceuticals, processed food and marine products. Indian drug makers get one more advantage: New Zealand will accept inspections already done by regulators such as the US Food and Drug Administration, the European Medicines Agency and the UK’s MHRA, which should cut the time needed to get medicines approved there.
Indian service companies and professionals also get access across about 118 sectors, including IT, construction and tourism.
New Zealand work visas for skilled Indians
The India New Zealand FTA creates two new Temporary Employment Entry visa categories, one for highly skilled jobs and one for a small number of occupations seen as typical of India. Up to 5,000 Indians can hold these visas in New Zealand at any one time, according to Immigration New Zealand, which said the routes are open from 20 October.
The cap is not a yearly quota. It is the maximum number of people on these visas at once, and each visa lasts up to three years. Applicants need a job offer from an accredited New Zealand employer and must meet qualification, English, health and character rules. The visa does not lead directly to permanent residence. The commitments are set out in New Zealand’s schedule on temporary employment entry in the agreement.
What students and young Indians get
Indian graduates of New Zealand universities in science, technology, engineering and maths can get post-study work visas of up to three years. Indians who finish a PhD there can stay and work for up to four years, a change that starts on 16 November 2026. New Zealand has also promised to keep at least 20 hours a week of work rights for Indian students during their studies, even if its wider rules change.
A working holiday scheme will follow. It will offer up to 1,000 places a year to Indians aged 18 to 30, for stays of up to 12 months, and is due to begin within two years of the deal taking effect, Indian Weekender reported.
Dairy stays out of the India New Zealand FTA
Farm goods were the most sensitive area for India. It has kept dairy, sugar, edible oils and most animal meat, apart from sheep meat, outside its tariff cuts. New Zealand apples, kiwifruit and Manuka honey will come in under quotas, minimum import prices and fixed seasonal windows, so that Indian growers are not undercut.
Overall, under the India New Zealand FTA, India has offered lower duties on about 70% of its tariff lines, covering roughly 95% of what New Zealand currently sells to India. Indian factories also get some raw materials, including wooden logs, coking coal and metal scrap, without duty.
How big India’s trade with New Zealand is
The numbers are small for now. Goods trade between the two countries rose from $873 million in 2023-24 to $1.3 billion in 2024-25, an increase of 49%, according to government data cited by The Tribune. India’s goods exports to New Zealand were $711 million in 2024-25, and its services exports reached $634 million in 2024.
Alongside the India New Zealand FTA, both governments want to double two-way trade in goods and services to NZ$7 billion, about ₹35,000 crore, by 2030. New Zealand has also committed to help bring $20 billion of investment into India over 15 years, in farming, manufacturing, infrastructure and start-ups.
When Indian exporters and visa seekers feel the change
Exporters can claim zero duty under the India New Zealand FTA from now on. The PhD visa change takes effect in November, and the working holiday scheme is still to be set up. Trade deals like this one shape what Indian factories can sell abroad; NewsPlainly’s world coverage follows how they affect Indian jobs and prices.
Frequently asked questions
When did the India New Zealand FTA come into force?
On 20 October 2026. It was signed in New Delhi on 27 April 2026.
How many Indians can get the new New Zealand work visa?
Up to 5,000 people can hold the new Temporary Employment Entry visas at any one time. Each visa lasts up to three years and needs a job offer from an accredited employer.
Is dairy included in the India New Zealand trade deal?
No. India has kept dairy, sugar, edible oils and most animal meat out of its tariff cuts.
Is there a working holiday visa for Indians in New Zealand?
A scheme with up to 1,000 places a year for Indians aged 18 to 30 is due within two years of the deal taking effect.