India's free trade agreement with New Zealand came into force on Tuesday, adding the 17th operational trade pact to the country's list. It gives Indian exporters tariff-free entry into the New Zealand market and opens up study and work routes for students and skilled professionals, according to the Global Trade Research Initiative (GTRI).
Under the deal, Wellington will remove import duties on every Indian product. Textiles, garments, leather, carpets, ceramics, engineering goods and auto components are among the sectors set to gain. "All Indian goods can now enter New Zealand at zero import duty," the GTRI report said.
The agreement was signed on April 27, 2026. It ended a long journey. Negotiations began in 2010, stalled in 2015, and picked up again in March 2025.
The GTRI said the larger prize may lie beyond goods. "Services and mobility could deliver larger gains for India," the report said. New Zealand has made commitments across 118 service sectors, including information technology, healthcare, education, financial services and telecommunications.
The mobility provisions are among the most notable parts of the pact. Indian students will be allowed to work up to 20 hours a week while studying. Graduates with a bachelor's or master's degree in STEM subjects will qualify for three-year post-study work visas, and doctorate holders for four-year visas. A temporary employment route will let up to 5,000 skilled Indian professionals work in New Zealand at any given time for up to three years, mainly in IT, healthcare and education. Under the Work and Holiday scheme, up to 1,000 young Indians a year will be able to live and work in the country for 12 months.
India has opened its own market in return. It has offered tariff concessions on about 70 per cent of its tariff lines, which cover nearly 95 per cent of New Zealand's exports to India. Dairy, sugar and edible oils stay outside the concessions. Apples, kiwifruit, Mānuka honey and albumins get concessions only within specified quotas or other conditions.
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The two countries trade in modest volumes at present. Goods trade was about USD 1.23 billion in calendar year 2025. Indian exports made up USD 651.8 million of that and imports USD 575.9 million, so the balance tilted slightly in India's favour.
The agreement also sets an investment goal of USD 20 billion from New Zealand over 15 years. The GTRI cautioned that the figure is more an aspiration than a forecast. New Zealand's investment in India added up to less than USD 1 billion over the previous 25 years.
The agreement could lay the groundwork for what comes next. Stronger transport links, simpler compliance procedures, recognition of qualifications and business partnerships would be critical to turning market access into actual trade and investment gains.
The GTRI also pointed to hurdles that Indian exporters will continue to face. These include strict food-safety standards, certification costs, high freight charges and long shipping times. The GTRI's assessment is that the pact's real impact will depend on more than tariff cuts. It will rest on how well businesses use the market access and services opportunities now available.
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