Stories
India-New Zealand FTA: $20 Billion Investment, Zero-Duty Trade Deal Takes Effect
- •The India-New Zealand Free Trade Agreement (FTA) comes into force on October 20, offering wider market access and a $20 billion investment commitment from New Zealand into India.
- •India gains 100% duty-free access for its exports to New Zealand, boosting sectors like textiles, leather, gems, and engineering goods, while also securing duty-free access to key inputs.
- •India has liberalized tariffs on 70.03% of tariff lines but protected sensitive agricultural sectors like dairy, onions, and sugar from full liberalization.
- •New Zealand's apples, kiwifruit, and Manuka honey will enter India under tariff-rate quotas and safeguards, linked to an Agricultural Productivity Partnership.
- •The FTA opens doors for Indian professionals with a new Temporary Employment Entry visa pathway for up to 5,000 individuals, and offers enhanced student mobility and post-study work rights for Indian students.
Key Questions Answered
Under the India-New Zealand Free Trade Agreement, 100% of Indian exports will receive zero-duty access to New Zealand, boosting labor-intensive sectors like textiles, leather, gems, and engineering goods. Concurrently, India has implemented tariff liberalization on 70.03% of tariff lines while protecting sensitive domestic farm sectors such as dairy products, onions, and sugar.
The agreement establishes a Temporary Employment Entry visa pathway allowing up to 5,000 Indian professionals to work in New Zealand at any given time for up to three years. Additionally, it removes numerical caps for Indian students, permits them to work at least 20 hours a week, and grants post-study work rights of up to four years for doctoral graduates.
New Zealand has committed to facilitating $20 billion in investments across areas such as agriculture, infrastructure, startups, and emerging technologies. Furthermore, the FTA allows New Zealand to accept good manufacturing and clinical practice inspection reports from trusted regulators like the US FDA and EMA to reduce compliance costs and accelerate pharmaceutical approvals.
