India-New Zealand FTA comes into force: What changes from today | Economy & Policy News

While Indian exports will receive duty-free access across all tariff lines in New Zealand, India’s tariff concessions will vary by product, with some reductions taking effect immediately and others being phased in over time. 

Here is what changes from today.

Indian exports get duty-free access to New Zealand

India has begun offering preferential tariff treatment to selected New Zealand products under the agreement. The concessions include duty-free access for specified sheep meat, wool and wood products, while tariffs on other products will be reduced according to the agreed schedule. 

Wine tariffs will depend on the value of each 750 ml container. In the first year, the rate will be 150 per cent for wine valued below $5, 95 per cent for wine valued at $5 to below $15, and 70 per cent for wine valued at $15 or more, based on the CIF value. 

The agreement also provides preferential access for selected agricultural products through tariff-rate quotas. Qualifying New Zealand kiwifruit valued at least $1.80 per kg will have a zero-duty quota of 6,250 tonnes in the first year. The apple quota, by contrast, begins in the second year, when 35,000 tonnes can enter at a 25 per cent duty, compared with the existing 50 per cent rate. 

Certified Manuka honey will receive lower tariffs under a quota arrangement. For the remainder of 2026, the notified quota is 40 tonnes, with a reduced rate for qualifying imports priced at $20 to below $30 per kg. The annual quota under the agreement is 200 tonnes, with tariffs falling further over five years.

Dairy products remain protected

India has kept sensitive products, including dairy, sugar, edible oils and specified agricultural commodities, outside its tariff concessions. Animal meat is also excluded, except for sheep meat covered by the agreement.

New temporary work visa pathways open for Indians

Two Temporary Employment Entry visa pathways for eligible Indian nationals become available from October 20. The combined cap is 5,000 visa holders at any one time, and the visas are valid for three years without a direct pathway to residence. 

Applicants must meet New Zealand’s immigration requirements, including having a qualifying job offer from an accredited employer and meeting the relevant qualification, English-language, health and character conditions. 

Further changes will follow. From November 16, eligible Indian graduates with PhDs from New Zealand will be able to apply for post-study work visas of up to four years. A working-holiday scheme for Indian nationals aged 18 to 30 is due within two years, with up to 1,000 places annually.

Further tariff cuts and visa changes to come

Several provisions of the agreement will take effect over the coming years. New Zealand’s tariff concessions will expand over time, while eligible Indian graduates will receive expanded post-study work opportunities under the agreement’s provisions.

The two countries also plan to introduce a working-holiday scheme for Indian nationals aged 18 to 30, with up to 1,000 places annually and stays of up to 12 months. The scheme is to be introduced within two years of the agreement taking effect.

New Zealand has also committed to facilitate $20 billion in investment into India over 15 years. The agreement aims to double bilateral trade in goods and services to NZ$7 billion by 2030.