India-New Zealand trade pact takes effect: zero duty for Indian goods, new work and study routes

A USD 20 billion investment goal and a long list of challenges: the GTRI’s assessment of the India-New Zealand FTA

October 20, 2026

Which Indian goods benefit, and what has India offered New Zealand in return?

New Zealand has made commitments across 118 services sectors

The India-New Zealand Free Trade Agreement (FTA) came into force on Tuesday, becoming India’s 17th operational trade pact. According to the Global Trade Research Initiative (GTRI), it opens new doors for Indian exporters, students and skilled workers.

Tariff-free entry for Indian goods

New Zealand has agreed to remove import duties on all Indian goods. That means textiles, garments, leather, carpets, ceramics, engineering goods and auto components can now enter the New Zealand market without tariffs. As the GTRI report put it, all Indian goods can now enter at zero import duty.

The agreement was signed on April 27, 2026. Talks began in 2010, stalled in 2015 and resumed in March 2025.

Services and mobility

New Zealand has made commitments across 118 services sectors, including IT, healthcare, education, financial services and telecommunications.

For students, the pact allows Indian students to work up to 20 hours a week. Graduates of STEM bachelor’s and master’s programmes will be eligible for three-year post-study work visas, and doctorate holders for four-year visas.

For professionals, up to 5,000 skilled Indians at any given time can take up temporary employment for stays of up to three years, particularly in IT, healthcare and education. In addition, up to 1,000 young Indians a year can live and work in New Zealand for 12 months under a Work and Holiday scheme. The GTRI said services and mobility could deliver larger gains for India than goods trade.

What India offers in return

India has offered tariff concessions on about 70 per cent of its tariff lines, covering nearly 95 per cent of New Zealand’s exports. Dairy, sugar and edible oils are excluded. Apples, kiwifruit, Mānuka honey and albumins get concessions, subject to quotas or other conditions.

Trade and investment numbers

Bilateral goods trade was about USD 1.23 billion in 2025, with Indian exports at USD 651.8 million and imports at USD 575.9 million.

The agreement sets an investment goal of USD 20 billion from New Zealand over 15 years. The GTRI said the target is aspirational, since New Zealand’s investment in India totalled less than USD 1 billion over the previous 25 years.

The road ahead

The report said the pact offers a framework for deeper cooperation, but gains will depend on better transport links, simpler compliance, recognition of qualifications and business partnerships. It also flagged persistent hurdles for Indian exporters, namely strict food-safety standards, certification costs, high freight charges and long shipping times. The overall impact will depend on how well businesses use the new market access and services opportunities.

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