Although India–New Zealand FTA negotiations concluded in record nine months do not spell much for travel and tourism exchanges, the FTA promises Temporary Employment Entry (TEE) for Indian professionals in ‘iconic’ professions and a new desire to cooperate on the traditional medicines of two nations, AYUSH of India and rongoa Maori of New Zealand.
The Free Trade Agreement (FTA) framework concluded between India and New Zealand yesterday aims to consolidate and strengthen trade and investment between the two countries significantly by removing numerous barriers that have existed so far.
The agreement stands out as one of India’s fastest-concluded FTAs and establishes a high-quality economic partnership focused on employment generation, skill mobility, innovation, MSME participation and long-term economic resilience.
The FTA framework agreed between the two countries promises to enhance the number of temporary employment entry (TEE) of Indian professionals to New Zealand to 1,677 TEE visas – 1,466 visas are aside for 13 skilled occupations, drawn from the Immigration NZ’s ‘Green List’ of occupations that have a skills shortage and another 200 visas per annum would be issued in ‘iconic’ Indian occupations – Yoga, music, chefs and Ayurvedic practitioners.
As per the framework finalised, New Zealand has also given India a working holiday scheme with up to 1,000 places per annum. Indian students will be entitled for right to work for up to 20 hours per week while studying (current practice is 25 hours per week) and to work for a set period, ranging from two years for those graduating with a bachelor’s degree, to four years for PhDs after they have completed their programmes of study.
Activities covered by the cooperation framework include information exchanges on best practices and technical matters, traditional medicine collaboration including for AYUSH and rongoā Māori practitioners, business to business exchanges including Māori and tribal enterprises.
In addition, New Zealand has committed to facilitating investments worth USD 20 billion in India over the next 15 years, supporting manufacturing, infrastructure, services and innovation under the Make in India initiative. As per latest statistics, the total two-way trade between India and New Zealand up to June, 2025 this year was NZD 3.68 billion. New Zealand’s key exports to India include travel services to the tune of NZD 948 million.
Prime Minister Narendra Modi on Monday said the Free Trade Agreement (FTA) between India and New Zealand will enable the bilateral partnership to “scale newer heights,” as the two countries announced the successful conclusion of negotiations.
Prime Minister Modi held a telephone conversation with New Zealand Prime Minister Christopher Luxon, during which the two leaders jointly announced the conclusion of the historic, ambitious, and mutually beneficial India–New Zealand Free Trade Agreement (FTA). The talks were completed in a record nine months, following Luxon’s visit to India in March.
“An important moment for India-New Zealand relations, with a strong push to bilateral trade and investment,” PM Modi wrote on X.
Prime Minister Modi said the agreement sets the stage for “doubling bilateral trade in the coming 5 years.”
“The FTA reduces or removes tariffs on 95 pc of our exports to India. It’s forecast that New Zealand exports to India could increase by $1.1–$1.3 billion per year over the coming two decades,” said NZ PM Luxon said.
“Boosting trade means more Kiwi jobs, higher wages, and more opportunities for hardworking New Zealanders. The agreement builds on the strong friendship between our two countries. India is one of the fastest-growing economies in the world, and this gives Kiwi businesses access to 1.4 billion Indian consumers,” he added.
“Our government is relentlessly focused on fixing the basics and building the future, with new trade deals like this helping to grow our economy so all Kiwis can get ahead.”
In a statement, the Ministry of External Affairs said the leaders agreed that concluding the FTA in just nine months reflects the shared ambition and strong political will to deepen bilateral ties. The agreement is expected to significantly enhance economic engagement, improve market access, promote investment flows, strengthen strategic cooperation, and create new opportunities across sectors.
The FTA also delivers New Zealand’s most ambitious services offer to India, covering 118 services sectors and around 139 sub-sectors, including IT and IT-enabled services, professional services, education, financial services, telecommunications, construction, tourism and audiovisual services.
