India and New Zealand have concluded a landmark free trade agreement that places workforce and student mobility at the heart of bilateral economic cooperation. A key highlight of the pact is New Zealand’s commitment to issue 5,000 temporary work visas for Indian nationals for periods of up to three years, covering priority sectors such as information technology, engineering, healthcare, education, yoga, culinary arts and music.
Services form a central pillar of the agreement, with India securing market access across 118 service categories, including IT and other knowledge-based sectors. The pact also introduces a structured student mobility framework and a post-study work arrangement, allowing Indian students in New Zealand to work up to 20 hours per week without any quota restrictions.
On the trade front, India will reduce tariffs on around 70 per cent of its tariff lines, accounting for nearly 95 per cent of the current bilateral trade value, while excluding about 30 per cent of sensitive items. Agricultural imports such as apples, kiwifruit and Manuka honey will be managed through tariff-rate quotas, minimum import prices and seasonal safeguards to protect Indian farmers.
Dairy remains completely excluded from the agreement, reflecting India’s long-standing position on safeguarding the livelihoods of millions of small dairy farmers. Despite New Zealand being a major global dairy exporter, dairy trade between the two countries remains limited.
With bilateral trade currently valued at about $2.4 billion, both countries have expressed confidence that the agreement will help double trade within five years and facilitate up to $20 billion in New Zealand investment into India over the next 15 years.
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