New Zealand–India free trade agreement: container ship at a New Zealand port with kiwifruit, apples and wine barrels, MediaPavilion Global News Oceania
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New Zealand–India Free Trade Agreement Comes Into Force: Tariffs, Visas and What Changes Now

ByMedia Pavilion

The New Zealand–India free trade agreement officially came into force on Tuesday, 20 October 2026, cutting tariffs on a large share of trade between the two countries and opening new visa pathways for Indian workers and students. The date was chosen to coincide with Vijay Dashami, a festival that, according to India’s Press Information Bureau (PIB), symbolises victory and new beginnings.

New Zealand’s Trade and Investment Minister Todd McClay said 57% of the country’s exports to India are now tariff-free, including sheep meat, wool, coal and most forestry products, according to RNZ. For India, the government says all of its goods can now enter New Zealand duty-free.

The agreement was negotiated unusually quickly. Talks were launched on 16 March 2025, concluded on 22 December 2025 and the deal was signed on 27 April 2026, according to PIB. “Today, just 19 months after we started, it’s in force and working for exporters,” McClay said in a statement reported by RNZ.

What Does the NZ–India Free Trade Agreement Change From Today?

According to New Zealand’s Ministry of Foreign Affairs and Trade (MFAT), the agreement gives preferential access for about 95% of New Zealand’s current exports to India by value. Roughly 57% becomes tariff-free from day one, rising to around 82% over time, while a further 13% of exports benefit from tariff reductions.

McClay said the next round of tariff cuts is due from 1 January 2027, RNZ reported. On the other side, India’s Ministry of Commerce and Industry says New Zealand has removed customs duties on all tariff lines covering Indian exports, removing peak tariffs of up to 10%.

Key Outcomes for New Zealand Exporters

  • Forestry: more than 95% of forestry exports become tariff-free immediately, according to MFAT.
  • Sheep meat, wool and coal: tariffs removed from entry into force.
  • Seafood: tariffs on many seafood products phase out over seven years.
  • Kiwifruit and apples: new tariff rate quotas, which MFAT describes as the first such access for New Zealand apples.
  • Wine: tariffs reduced by between 66% and 83% over ten years, according to MFAT.
  • Mānuka honey: tariffs cut by 75% over five years.

McClay said winemakers would be among the biggest winners. “Our winemakers have been shut out of India by tariffs of 150 percent. Those will now come down to 25 or 50 percent over 10 years,” he said, according to RNZ.

Key Outcomes for Indian Exporters

India’s PIB said the zero-duty access is expected to benefit sectors including textiles, apparel, leather, footwear, gems and jewellery, engineering goods, automobiles and auto components, chemicals, pharmaceuticals and processed foods. To mark the occasion, Indian Commerce and Industry Minister Piyush Goyal flagged off what PIB described as the first-ever export of a JCB machine from India to New Zealand.

“For India, 100% duty-free access to the New Zealand market opens significant new opportunities for our exporters, particularly MSMEs, artisans, farmers, and women entrepreneurs,” Goyal said, according to PIB.

Why Is Dairy Still Left Out?

Dairy has long been one of the most sensitive issues in India’s trade negotiations. PIB said sensitive products, including dairy, sugar, edible oils and key agricultural commodities, remain excluded from concessions in order to protect farmers, dairy producers and rural communities.

New Zealand did secure some limited dairy-related outcomes. According to MFAT’s summary of the agreement, a fast-track arrangement allows qualifying New Zealand inputs, including dairy ingredients, to enter India duty-free when they are used to manufacture goods exclusively for export, not for sale in India. MFAT also lists tariff elimination over seven years for some products such as bulk infant formula and certain dairy-based preparations. Whether these outcomes satisfy New Zealand’s largest export sector remains to be seen.

Linking Market Access to Farm Productivity

India has tied some of New Zealand’s market access to an Agricultural Productivity Partnership. According to PIB, tariff rate quotas for apples, kiwifruit and Mānuka honey are formally linked to action plans overseen by a joint council, including Centres of Excellence planned in states such as Nagaland, Uttarakhand, Himachal Pradesh, Uttar Pradesh and West Bengal.

New Visa Pathways for Indian Workers and Students

The agreement also includes commitments on people movement that are likely to draw strong interest in India. Immigration New Zealand (INZ) said it will offer a new Temporary Employment Entry visa, with up to 5,000 visa holders in New Zealand at any one time. INZ said this is equivalent to about 1,667 visas a year, including places for 13 Green List occupations and 200 places for “iconic” Indian occupations such as yoga instructors, Indian chefs, music teachers and Ayurveda practitioners.

  • Visa length: INZ said the Temporary Employment Entry visas will last up to three years and will not include a pathway to residence.
  • Students: from 16 November 2026, INZ said post-study work rights for Indian doctoral graduates will be extended to up to four years, alongside a commitment allowing students to work up to 20 hours a week during study.
  • Working holidays: New Zealand has committed to introduce a working holiday scheme for up to 1,000 Indian nationals aged 18 to 30 each year within two years, according to INZ.

There are some differences in how the two governments describe these commitments. PIB described the Temporary Employment Entry arrangement as a quota of 5,000 visas, while INZ describes 5,000 as the maximum number of visa holders at any one time. Applicants should check the official INZ guidance as rules are published.

What Does It Mean for Investment and Trade Flows?

New Zealand has committed to facilitate US$20 billion of investment into India over 15 years, according to MFAT and PIB, with a dedicated New Zealand investment desk to support the goal. PIB said the investment is expected to benefit agriculture, manufacturing, infrastructure and start-ups.

The two countries’ Strategic Partnership roadmap sets an aspirational goal of doubling bilateral trade in goods and services to NZ$7 billion by 2030, PIB said. The deal is part of a wider push by both governments to diversify trade, in line with regional efforts to cut barriers elsewhere, such as the East African Community’s digital trade plans.

“India is one of the fastest-growing economies in the world… Getting in early, on good terms, matters,” McClay said, according to RNZ, describing the agreement as essential during an uncertain period for the world economy.

What Exporters Need to Know About Customs

New Zealand Customs says goods must meet the agreement’s rules of origin to qualify for preferential tariffs, and that a certificate of origin is required, with self-declaration not yet available. Official New Zealand guidance on the agreement also highlights commitments to release goods from customs within 48 hours where possible, and within 24 hours for perishable goods.

Businesses on both sides are being encouraged to check tariff schedules and origin rules before shipping. Rajesh Agrawal, Secretary of India’s Department of Commerce, said the job now was “to translate this opportunity into actual benefits for our people”, according to PIB.

The deal takes effect during a volatile week for Asian markets, with Indonesia battling a record stock market rout after MSCI’s downgrade warning.

What to Watch Next

  • 1 January 2027: the next round of tariff reductions for New Zealand exporters, according to McClay.
  • 16 November 2026: INZ’s extended post-study work rights for Indian doctoral graduates take effect.
  • Visa rules: detailed eligibility for the Temporary Employment Entry visa and the planned working holiday scheme.
  • Dairy: how much use exporters make of the fast-track arrangement for inputs used in goods made for export.
  • Investment: progress towards the US$20 billion investment goal.

The agreement gives exporters in both countries clearer access to each other’s markets, but its real value will depend on how many businesses use it. As McClay put it at the launch, according to PIB, the deal’s success “will ultimately be measured by the opportunities it creates and the extent to which our businesses use it”.

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