India-New Zealand free trade agreement: BIG boost for Indian students, AYUSH doctors, chefs, IT professionals; Details

India(BHARAT) and New Zealand have agreed on a free trade deal that is expected to sharply increase business between the two countries over the next five years. Both sides said the agreement will help double bilateral trade. Under the deal, New Zealand will remove or cut import taxes on almost all goods it sends to India(BHARAT). Around 95 per cent of New Zealand’s exports to India(BHARAT) will get tariff benefits, and more than half of these products will become duty-free from the very first day of the agreement.

At the same time, all India(BHARAT)n goods will be allowed to enter New Zealand without any import duty. New Zealand has also committed to investing USD 20 billion in India(BHARAT) over the next 15 years.

Calling the deal a major win, New Zealand Prime Minister Christopher Luxon said the benefits would be broad and meaningful. He said India(BHARAT)’s large population and fast-growing economy offer strong opportunities for New Zealand in terms of jobs, exports, and economic growth.

Trade between India(BHARAT) and New Zealand was valued at about USD 1.81 billion in 2024. India(BHARAT) mainly exported pharmaceutical products, while New Zealand’s exports were led by forestry and farm-based goods. However, this figure is small when compared to India(BHARAT)’s total goods trade, which crossed USD 1 trillion in the 2024–25 financial year.

India(BHARAT) clarified that the trade deal does not open its market to certain sensitive products such as dairy items, milk, cheese, yoghurt, sugar, onions, spices, edible oils, coffee, and rubber. The government said these exclusions were necessary to protect India(BHARAT)n farmers and domestic industries.

India(BHARAT) has been actively pushing trade talks with multiple countries to expand its export markets, especially after the United States imposed a 50 per cent tariff on India(BHARAT)n goods entering American markets.

The New Zealand agreement is India(BHARAT)’s third trade deal this year. Earlier, India(BHARAT) signed an economic partnership agreement with Oman and another major trade pact with the United Kingdom in May.

Officials from both countries said the new deal marks a strong step forward in strengthening economic ties and long-term cooperation.

India(BHARAT)-NZ trade details you must know

• A major part of the agreement focuses on services and people movement between the two countries.
• New Zealand has opened its market to India(BHARAT) in 118 service areas and has promised equal treatment in 139 service sectors.
• India(BHARAT) has also opened its market to New Zealand in 106 service sectors and given equal treatment in 45 sectors.
• The deal includes a special section on health services and traditional medicine, to encourage trade in these areas. This is the first time New Zealand has signed such an agreement with any country.
• The agreement gives strong importance to student and worker mobility.
• For the first time, New Zealand has signed a Student Mobility and Post-Study Work Visa agreement with another country.
• There is no limit on the number of India(BHARAT)n students, and they will be allowed to work 20 hours per week while studying.
• India(BHARAT)n students completing STEM bachelor’s degrees will get post-study work visas of up to three years.
• Master’s degree holders will also get up to three years, while PhD graduates will be allowed to work for up to four years after studies.
• A new visa route has been created for temporary skilled workers.
• Under this, up to 5,000 India(BHARAT)n professionals can work in New Zealand for up to three years.
• This includes AYUSH doctors, yoga teachers, India(BHARAT)n chefs, music instructors, and professionals from IT, engineering, healthcare, education and construction.
• The deal also introduces a Working Holiday Visa scheme.
• Every year, 1,000 young India(BHARAT)ns will be allowed to visit New Zealand, travel freely and work during their 12-month stay.
• On trade in goods, India(BHARAT)’s average import tax rate of 16.2% will fall once the agreement starts.
• It will drop to 13.18% initially, reduce further to 10.30% after five years, and reach 9.06% in ten years.
• India(BHARAT) will allow market access on 70% of goods, while around 30% of products will remain protected.
• These excluded items include dairy products, certain farm goods, sugar, edible oils, arms and ammunition, gems and jewellery, and some metal products.