India-New Zealand FTA to bring in $20 bn investment, visa access boost

The India-New Zealand FTA promises $20 billion investment over 15 years, zero-duty access for Indian exports and a new capped skilled visa pathway for Indian professionals

India and New Zealand on Monday concluded a Free Trade Agreement (FTA) after nine months of intensive effort. Prime Minister Narendra Modi held a telephone conversation with the Prime Minister of New Zealand, Christopher Luxon, and they jointly announced the successful conclusion of the deal.

 

The deal, alongside sweeping tariff cuts, opens a new pathway for Indian professionals to work in New Zealand under a capped skilled visa programme.

 

In a statement, the government said, "The FTA would significantly deepen bilateral economic engagement, enhance market access, promote investment flows, strengthen strategic cooperation between the two countries, and also open up new opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth of both countries across various sectors."

 

 

During their conversation, both leaders expressed confidence in doubling bilateral trade over the next five years as well as an investment of $20 billion in India from New Zealand over the next 15 years.

 

Minister of Commerce and Industry Piyush Goyal said, "This FTA is about building trade around people and launching opportunities for our farmers, entrepreneurs, students, women and innovators. Boosting yields and farmer incomes, the agreement drives modern agricultural productivity. It opens doors for Indian businesses in the region through well-integrated directional exports and gives our youth choices to learn, work and grow on a global stage."

What does the deal say?

According to the trade deal, which is likely to be signed in three months and implemented next year, exporters will enjoy zero tariffs on all exports from India. Meanwhile, India has offered tariff liberalisation across 95 per cent of New Zealand's imports.

 

Under the agreement, New Zealand will offer 1,667 three-year skilled work visas annually to Indian professionals. These temporary visas will be targeted at sectors facing acute skill shortages in New Zealand, including healthcare, education and engineering, such as doctors, nurses, teachers and engineers.

 

Commerce Secretary Rajesh Agrawal said, “India’s strengths will help expand exports, support labour-intensive growth and strengthen the services sector, while New Zealand will gain deeper and more predictable access to India’s large and growing economy. The movement of people, students, professionals and skilled workers, will further align and reinforce these complementary strengths.”