05 May 2026

India & New Zealand Free Trade Agreement Signed

The India-New Zealand Free Trade Agreement (FTA), which was signed in April 2026, includes 100% duty-free access for Indian exports to New Zealand, a USD 20 billion FDI commitment from NZ over 15 years, and 5,000 skilled visas for Indians. It safeguards India's vulnerable dairy and agriculture sectors while promoting MSMEs, textiles, and services.


Key Highlights of the India-New Zealand FTA (2026):

  • Trade and Tariff Elimination: New Zealand dropped tariffs on 100% of Indian exports, which benefited labor-intensive industries such as textiles, leather, footwear, and engineering goods. India granted market access on 70% of tariff lines, accounting for 95% of New Zealand exports, while protecting sensitive industries such as dairy, dairy products, apples, and wines.
  • Massive Investment Commitment: New Zealand has committed to investing USD 20 billion in India over the next 15 years, focusing on industries such as manufacturing, agriculture, renewable energy, and technology.


  • Talent Mobility & Visas:
    • Qualified Professionals: A new channel will provide 5,000 temporary employment visas for qualified Indian professionals (up to a three-year stay).
    • Students: Improved post-study employment rights, including up to four years for PhD grads, and recognition of student mobility.
    • Working Holiday: Each year, 1,000 young Indians aged 18 to 30 can acquire a 12-month working holiday visa.

  • Services and Collaboration: The agreement covers 118 service areas, with a particular emphasis on IT, professional services, tourism, and education. It makes provisions for agricultural productivity partnerships and mutual recognition of organic certificates.
  • Support for MSMEs: The agreement includes special provisions to help small and medium-sized businesses by lowering technical trade obstacles and encouraging incorporation into global value chains.
  • Protected Sectors (India): To protect domestic interests, India excluded important agricultural items from the agreement, including milk, cream, cheese, yoghurt, and whey, as well as select vegetables such as onions and peas.

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