New Zealand and India have concluded negotiations on a comprehensive Free Trade Agreement (FTA), marking one of the most significant developments in New Zealand’s trade landscape in over a decade. While the final text has not yet been released, signed or entered into force, both governments have issued detailed summaries outlining the negotiated terms [1]. These documents read together provide the clearest picture to date of expected market access outcomes, exclusions, and the implementation pathway.

This alert summarises the key features of the FTA, identifies which sectors stand to gain or face constraints, and outlines next steps for businesses positioning for entry into force.

Who needs to read this alert and why

The NZ–India FTA has material implications for:

• New Zealand exporters in horticulture, forestry, seafood, industrial goods, and manufacturing, where tariff reductions are substantial.

• New Zealand importers sourcing textiles, leather goods, pharmaceuticals, engineering products, and IT enabled services, which will receive full duty free access into New Zealand.

• Primary sector producers, particularly in dairy and other sensitive product areas excluded from India’s tariff concessions.

• Services-sector employers in IT, engineering, health, education and construction, who will benefit from expanded mobility and services commitments.

• Legal, compliance, and government relations teams monitoring legislative timelines, potential political risks, and regulatory changes.

Early visibility of obligations and opportunities will help businesses plan for market changes well before the FTA enters into force.

Current status and the political pathway from here

Negotiations concluded on 22 December 2025. Before the FTA can be signed or implemented:

• Both countries must pass enabling legislation.

• New Zealand requires cross bench support, as New Zealand First has stated it will not support the deal [2]. ACT is expected to support it [3].

• Labour continues internal discussions on investment and immigration components, and its final position remains under consideration.

• Signing is targeted for the first half of 2026, followed by domestic ratification procedures in both countries.

This provides businesses with lead time to prepare, but the political dynamics mean the precise implementation timeline should be treated as indicative.

Key market access outcomes

1. Tariff elimination for New Zealand exports

India has agreed to eliminate or substantially reduce tariffs on 95% of New Zealand’s exports.

Headline gains include:

• 57% of tariff lines duty free on day one, increasing to 82% at full implementation.

• Immediate elimination for sheepmeat, wool, coal, and over 95% of forestry and wood exports.

Products with phased tariff reductions over 3–10 years include:

• Seafood (mussels, salmon)

• Iron, steel, scrap aluminium

• Various industrial goods

2. Significant horticulture gains

New Zealand secures unprecedented access for key horticultural exports:

• Apples

  • In quota tariff cut from 50% to 25%.

  • Quota: 32,500 MT (Year 1) → 45,000 MT (Year 6).

  • Seasonal window: 1 April–31 August; Minimum Import Price (MIP): US$1.25/kg.

  • NZ becomes the first country with preferential apple access under any Indian FTA.

• Kiwifruit

  • Duty free in quota (down from 33%).

  • Quota: 6,250 MT (Year 1) → 15,000 MT (Year 6).

  • Seasonal window: 1 April–15 October.

  • In quota MIP: US$1.80/kg; out of quota: 50% margin of preference with MIP of US$2.50/kg.

• Mānuka honey

  • Tariff cut from 66% to 16.5% over five years.

  • Annual quota of 200 MT; MIP: US$20/kg.

  • NZ becomes the first country with preferential honey access in any Indian FTA.

3. Tariff outcomes for New Zealand importers and Indian exporters

New Zealand will provide zero duty access on 100% of India’s tariff lines, benefitting:

• Textiles and apparel

• Leather goods

• Engineering products

• Pharmaceuticals

• IT enabled services

This will lower costs for New Zealand businesses relying on Indian inputs.

4. Sensitive sector protections

India has retained full protection for ~30% of tariff lines, including:

• Dairy (all major product categories)

• Staples: rice, wheat, sugar

• Onions and select vegetables

• Edible oils

• Rubber

• Selected metals

These carve outs reflect longstanding market sensitivities and will shape exporter expectations.

5. Services, skills mobility and workforce pathways

The FTA provides broad commitments across services and labour mobility:

• Temporary Employment Entry (TEE) visas

  • 1,667 three year visas annually, capped at 5,000 holders.

  • 1,466 visas allocated to 13 Green List occupations.

  • 200 visas reserved for iconic Indian occupations: yoga instructors, music teachers, Indian chefs, and AYUSH practitioners.

• Professional mobility across IT, engineering, healthcare, education, construction.

• Student mobility enhancements

  • 20 hour weekly work rights guaranteed.

  • Post study visas up to 3 years (STEM Bachelor/Master) or 4 years (PhD).

  • Removal of caps on student numbers.

• Working Holiday Scheme: Up to 1,000 visas annually.

• Traditional medicine cooperation: A dedicated Health and Traditional Medicine Annex covering AYUSH and Rongoā Māori — a first for NZ.

• Services access: India makes commitments across ~118 sectors with MFN guarantees covering ~139 subsectors.

6. Investment and long term cooperation

Key investment outcomes include:

• A commitment to facilitate USD 20 billion in private-sector investment into India over 15 years, backed by New Zealand’s commitment to promote these flows.

• Establishment of a “New Zealand Investment Desk” in India to support New Zealand investors throughout the investment lifecycle.

• A Rebalancing Clause, enabling India to take remedial measures if investment inflows fall significantly short.

• Priority sectors: 

  • Infrastructure

  • Renewable energy

  • Education

  • Agritech and food systems

  • Innovation, supply chain resilience, sustainable development

These provisions signal a step change toward deeper long term economic integration.
 

What happens next?

Before the FTA enters into force:

• New Zealand must pass enabling legislation (currently requiring cross bench support).

• India will undertake its own legislative process.

• Signing is targeted for early–mid 2026.

• Entry into force occurs following the exchange of ratification instruments.

Public consultation on implementation is expected closer to signature.

Our view

The NZ–India FTA is strategically significant, offering major benefits for New Zealand exporters in horticulture, forestry, seafood and industrial goods, while New Zealand consumers and manufacturers will benefit from India’s full tariff elimination.

However:

• Dairy and other sensitive sectors remain excluded, limiting gains in key areas.

• Political uncertainty on the New Zealand side could delay implementation.

• Skills mobility commitments - especially TEE visas and iconic occupational categories - may attract domestic scrutiny, particularly given current labour market conditions (unemployment at a 10 year high of approximately 5.3% and softening demand). However, the provisions are designed to address structural rather than cyclical shortages: TEE visas are capped (5,000 holders maximum) and predominantly tied to Green List occupations where genuine skill gaps persist regardless of broader labour market conditions.

Despite these pressures, the agreement’s economic and strategic importance means we think parliamentary approval remains likely.

Businesses should now move to identify commercial opportunities, map sector specific commitments, and prepare for phased implementation.

How we can help

Our team provides integrated support across international trade, regulatory strategy and cross border commercial execution. We help clients to:

• Assess the NZ–India FTA’s impact on export, import and investment strategies.

• Structure and implement cross border deals, partnerships and supply chain arrangements.

• Engage with regulators to secure required approvals and manage implementation.

• Navigate immigration and workforce mobility settings linked to the FTA.

• Manage compliance and regulatory change across both markets.

• Prepare focused internal updates and board level briefings to guide decision making.

Please contact us for tailored advice or sector specific analysis.

Footnotes: 

[1] Fact-Sheet-NZ-FTA-dec-22-for-Website-ver2.pdf; Key Outcomes | New Zealand Ministry of Foreign Affairs and Trade.
[2] Luxon says Peters is wrong about India Free Trade Agreement | RNZ News; NZ First pulled support for India FTA before it was secured, Todd McClay reveals | RNZ News.
[3] ACT New Zealand