India’s free trade agreement (FTA) with New Zealand came into force on Tuesday, October 20, 2026, giving Indian exporters duty-free access across all tariff lines in the New Zealand market while introducing new visa pathways for Indian professionals, students and young travellers. The agreement also includes New Zealand’s commitment to facilitate US$20 billion in investment into India over 15 years.
Signed in New Delhi on April 27, 2026, the agreement was ratified by both countries in September, paving the way for its implementation. New Zealand’s Parliament passed legislation to implement the deal on September 16, The Hindu has reported.
Under the agreement, New Zealand has eliminated tariffs on 100% of Indian exports, removing duties that previously reached up to 10% on some products. The sectors expected to benefit include textiles and clothing, leather and footwear, pharmaceuticals, engineering goods, agricultural products, processed foods, marine products, plastics and rubber.
New Zealand will also gain improved access to the Indian market, with tariff concessions covering around 95% of the current bilateral trade value. India has offered concessions on 70% of its tariff lines, while keeping sensitive products and sectors outside the agreement to protect domestic interests, as reported by The Hindu.
Alongside the trade benefits, the agreement introduces new immigration commitments intended to strengthen professional and educational links between the two countries.
According to Immigration New Zealand, the FTA includes two new Temporary Employment Entry (TEE) visa categories, expanded post-study work rights for some Indian graduates, commitments around in-study work rights for Indian students, and a new working holiday scheme.
"The FTA includes two new Temporary Employment Entry (TEE) visa categories, expanded post-study work rights for some Indian graduates, commitments around in-study work rights for Indian stlıdents, and a new working holiday scheme," the Immigration department said in a statement, as quoted by The Hindu.
"The new TEE visa pathways available from 20 October 2026 are for highly skilled occupations and a small number of professions considered iconic to India."
"These allow up to 5,000 TEE visa holders in New Zealand at any one time, with most places allocated to skilled occupations already identified on New Zealand's Green List," as quoted by The Hindu.
The TEE pathways will allow up to 5,000 eligible visa holders to be in New Zealand at any one time. Applicants must still meet the relevant immigration requirements, including having a qualifying job offer from an accredited employer and meeting applicable qualification, English-language, health and character requirements. The visas will be valid for up to three years and will not provide a direct pathway to residence.
From November 16, 2026, eligible Indian graduates with New Zealand PhDs will be able to qualify for post-study work visas of up to four years, an increase from three years. The agreement also commits New Zealand to maintaining at least 20 hours of in-study work rights for Indian students if policy settings change in the future, The Hindu has reported.
A new working holiday scheme for Indian nationals aged 18 to 30 is due to be introduced within two years of the agreement taking effect. It will be capped at 1,000 places annually and allow successful applicants to stay in New Zealand for up to 12 months.
For India, the removal of tariffs is expected to improve the competitiveness of its goods in New Zealand and create opportunities for businesses, manufacturers, farmers and small enterprises, as reported by The Hindu.
For New Zealand, the agreement provides improved access to the Indian market, with provisions covering products such as apples, kiwifruit, mānuka honey and albumins through duty-based quotas and other safeguards. Minimum import price requirements and additional protections are intended to manage imports and protect Indian farmers.
The agreement represents a broader effort to strengthen economic ties between the two countries through trade, investment and the movement of people. Its long-term impact will depend on how effectively businesses use the new market access and how the investment and mobility commitments are implemented, The Hindu has reported.
For exporters, employers, students and skilled professionals, the FTA marks a new phase in the India-New Zealand relationship, creating additional opportunities while retaining eligibility requirements and safeguards in key areas.