India-New Zealand FTA comes into force; new visa categories for Indians, zero-duty access for exports

India’s free trade agreement with New Zealand came into force on Tuesday (October 20, 2026), eliminating 100% of Indian exports to the country and including $20 billion worth of foreign direct investment into India as part of the deal. Moreover, 95% of New Zealand’s exports to India will either be allowed tariff-free or at “sharply” reduced levies.

The FTA was signed on April 27 in New Delhi and ratified on September 21. New Zealand’s Parliament, on September 16, had passed legislation to implement the FTA.

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According to the New Zealand government’s immigration department, the new FTA bring with it new visa commitments for the country.

“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 Immigration department said in a statement.

“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.”

Gains for India

New Zealand is giving 100% duty-free market access from Tuesday. It covers all tariff lines or product categories and 100% of India’s current exports to New Zealand.

This is the first FTA for India where it receives full duty-free access across all tariff lines from entering into force.

Eliminating import duty would remove the tariff disadvantage of pre-FTA rates, up to 10%, that Indian exporters face in the New Zealand market.

The major sectors that would benefit include fruits and vegetables; coffee, tea, cocoa and spices; cereals; processed foods; textiles and clothing; leather and footwear; pharmaceuticals; engineering goods; marine products; plastics and rubber.

Gains for New Zealand

India is giving tariff concessions on 70% of its tariff lines, covering about 95% of the current bilateral trade value. The remaining 29.97% of the lines have been kept in the exclusion list.

India is giving duty based quota for apples, kiwifruit, manuka honey and albumins, along with minimum import price (MIP) provisions and other safeguard measures.

This approach is expected to ensure calibrated imports while protecting the interests of domestic farmers.

(With inputs from PTI)