The landmark Free Trade Agreement (FTA) between India and New Zealand is poised to significantly enhance opportunities for Indian students, skilled workers, and a wide range of exporters. The deal marks a strategic step in expanding New Delhi's economic footprint in the Indo-Pacific region.
Enhanced Mobility for Students and Professionals
A major win for India is the substantial easing of mobility rules. Numerical caps on Indian students in New Zealand have been removed entirely. Students will now be permitted to work for a minimum of 20 hours per week during their studies. Post-study work opportunities have also been expanded, with visas extended to up to three years for STEM graduates and four years for PhD holders.
For working professionals, a new temporary employment entry visa will allow up to 5,000 Indian nationals at any given time to work in New Zealand for periods of up to three years. This covers key sectors including information technology, engineering, healthcare, education, and construction. The agreement also specifically facilitates the entry of Indian chefs, yoga instructors, AYUSH practitioners, and music teachers.
Furthermore, to promote cultural exchange, New Zealand will issue 1,000 multiple-entry working holiday visas annually to young Indians, enabling them to travel and take up short-term employment.
Major Gains for Indian Exporters and Manufacturers
The trade pact delivers substantial benefits for Indian goods and services. New Zealand has committed to providing 100% duty-free market access for all of India's current exports. For the agricultural sector, this includes the removal of tariffs on fruits, vegetables, spices, cereals, coffee, and cocoa.
Organic products like basmati rice, tea, psyllium husk, and flax seeds will gain from mutual recognition arrangements based on Australian standards. New Zealand will also support productivity enhancement in India for apples, kiwifruit, and honey through centres of excellence and joint research.
Labour-intensive manufacturing sectors are set for immediate gains. Textiles, apparel, and clothing will receive duty-free access, boosting exports of garments, home textiles, and handloom products. Tariffs on leather and footwear, which previously reached up to 10%, will be cut to zero. Engineering goods, chemicals, electronics, machinery, automotive products, plastics, and rubber items will see tariffs reduced or eliminated over time.
Services Sector and Pharmaceutical Breakthrough
In services, New Zealand has opened its market across approximately 118 sectors, including IT, professional services, education, telecom, construction, finance, tourism, and distribution.
Commerce and Industry Minister Piyush Goyal highlighted a significant achievement for the pharmaceutical industry. "We are very happy to report back to the nation that there will be a fast-track mechanism for approval of Indian pharmaceutical products, which will open up doors to the New Zealand market and help us capture a larger share of their current imports," he said.
In return, India has agreed to cut or eliminate duties covering 95% of the current bilateral trade value. New Zealand gains immediate access for products like wood, wool, sheep meat, and raw hides. Phased access over 3 to 10 years will be provided for petroleum products, malt extracts, vegetable oils, and selected machinery. Sensitive items like apples, kiwifruit, Manuka honey, and milk albumins will enter the Indian market under strict quotas and price safeguards.
This comprehensive agreement is expected to immediately benefit manufacturing and export-oriented sectors while forging stronger people-to-people and economic ties between the two nations in the Indo-Pacific.
