New Delhi: The India–New Zealand Free Trade Agreement (FTA) will be signed in Delhi on April 27. The agreement was finalised in record time last December after just nine months of negotiations. The signing was first announced by New Zealand Prime Minister Christopher Luxon. Under the agreement, all 8,284 products exported from India will become duty-free from the very first day it comes into effect.
Currently, New Zealand imposes an average tariff of 2.2 per cent on Indian goods, with around 450 items, including textiles, ceramics and automobiles, facing tariffs of up to 10 per cent. In return, 70.03 per cent of items (accounting for 95 per cent of the total import value) entering India from New Zealand will either be exempted from duties or see reductions. However, India has made no concessions on sensitive sectors such as dairy products, onions, sugar, spices, edible oil and rubber, in order to safeguard domestic farmers and industries.
On the first day of implementation, 30 per cent of New Zealand’s exports to India will become completely duty-free. These include timber, wool, sheep meat and leather. India’s average tariff on New Zealand goods will be reduced from 16.2 per cent to 9.06 per cent in a phased manner.
Economic and Mobility Benefits
The agreement is expected to bring significant economic gains for India, including Foreign Direct Investment worth $20 billion from New Zealand over the next 15 years. It also introduces mobility provisions, with 1,667 temporary work visas to be issued annually to Indians for three years. Of these, 1,446 visas are earmarked for 13 high-demand skilled sectors such as medical, engineering and construction, while the remaining 500 will be allocated to professionals like yoga teachers, musicians, chefs and Ayurveda practitioners. At any given time, the total number of such visas will be capped at 5,000.
Indian students in New Zealand will be allowed to work 20 to 25 hours per week. Post-study work opportunities have also been expanded: bachelor’s degree holders can work for two years, PhD graduates for four years, and those with degrees in science, technology, engineering and mathematics (STEM) for three years. Additionally, 1,000 “work and holiday” visas will be issued annually, enabling Indians to take up short-term employment in New Zealand.
The agreement also includes a New Zealand Agri-Technology Action Plan to support Indian farmers with expertise in kiwi, apple and honey production. Furthermore, New Zealand will accept clearances granted by international agencies for Indian medicines, eliminating the need for additional testing and paperwork.
