The Free Trade Agreement (FTA) between India and New Zealand came into effect on Tuesday, which provides for the elimination of customs duties on goods from India exported to New Zealand, as well as tariff concessions on certain imported goods from New Zealand into India. Furthermore, this agreement opens up new opportunities for temporary work visas for qualified specialists from India.
Although Indian exports will receive duty-free access to all product lines in New Zealand, India's tariff concessions will depend on the specific product; some reductions take effect immediately, while others will be implemented gradually.
Indian Exports Gain Duty-Free Access to New Zealand
Under this agreement, India has begun providing a preferential tariff regime for a range of products from New Zealand. These concessions include duty-free entry for certain types of mutton, wool, and timber, while duties on other goods will be reduced according to the agreed schedule.
Tariffs on wine will be determined by the value of each 750ml bottle. In the first year, the rate will be 150 percent for wine valued under $5, 95 percent for wine valued between $5 and less than $15, and 70 percent for wine valued at $15 or more, based on CIF value.
The agreement also provides preferential access for selected agricultural products through tariff-based quotas. Qualified New Zealand kiwifruit valued at no less than $1.80 per kg will receive a zero-duty quota of 6,250 tonnes in the first year. Regarding apples, the quota will start in the second year, allowing 35,000 tonnes to be imported at a 25 percent rate, compared to the existing 50 percent rate.
Certified Manuka honey will receive lower tariffs under the quota agreement. For the remainder of 2026, the established quota is 40 tonnes, with a reduced rate for corresponding imports priced between $20 and less than $30 per kg. The annual quota under the agreement is 200 tonnes, with tariffs further decreasing over five years.
Dairy Products Remain Protected
India has excluded sensitive goods from its tariff concessions, including dairy products, sugar, vegetable oils, and certain agricultural commodities. Animal meat is also excluded, except for mutton, which is covered by the agreement.
New Pathways Open for Temporary Work for Indian Citizens
As of October 20, two types of temporary employment visas become available for eligible Indian citizens. The total limit is 5,000 visa holders simultaneously, and these visas are valid for three years without a direct path to permanent residency.
Applicants must meet New Zealand's immigration requirements, including having a job offer from an accredited employer and meeting relevant qualification, language, medical, and moral standards.
Further changes will follow later. Starting November 16, graduates from India holding PhDs from New Zealand can apply for post-study work visas for up to four years. Within two years, a working holiday program for Indian citizens aged 18 to 30 is planned, with the possibility of up to 1,000 participants annually.
Further Tariff Reductions and Visa Policy Changes Ahead
Several provisions of the agreement will come into effect in the coming years. New Zealand's tariff concessions will expand over time, and relevant Indian graduates will gain expanded opportunities for post-study work in accordance with the agreement's provisions.
Both countries also intend to introduce a working holiday program for Indian citizens aged 18 to 30, offering up to 1,000 spots annually and allowing stays of up to 12 months. This program is scheduled to launch within two years of the agreement's entry into force.
New Zealand has also committed to facilitating $20 billion in investment into India over 15 years. The goal of the agreement is to double bilateral trade in goods and services to NZD 7 billion by 2030.
