India-New Zealand FTA: What Changes From October 21?

The India-New Zealand FTA takes effect on October 21, 2026, changing trade rules between the two countries. The agreement gives Indian exporters duty-free access to New Zealand's market and introduces tariff concessions on selected New Zealand imports into India.

The deal also opens new temporary work visa pathways for eligible Indian professionals. However, India's tariff concessions will vary by product, with some reductions starting immediately and others being phased in over time.

Here are the five major changes under the India-New Zealand FTA.

Duty-Free Exports and Tariff Concessions

Indian goods will receive duty-free access across all tariff lines in New Zealand. The agreement also introduces preferential tariff treatment for selected New Zealand products entering India.

Key changes include:

• Sheep meat, wool and wood: Specified products will receive duty-free access in India, while other products will benefit from scheduled tariff reductions.
• Wine imports: In the first year, tariffs will be 150 percent for wine valued below USD 5, 95 percent for wine priced between USD 5 and USD 15, and 70 percent for wine valued at USD 15 or more per 750 ml container. These rates are based on CIF value.
• Kiwifruit: Qualifying New Zealand kiwifruit priced at least USD 1.80 per kg will receive zero-duty access under a first-year quota of 6,250 tonnes.
• Apples: The quota begins in the second year, allowing 35,000 tonnes to enter India at a 25 percent duty, compared with the existing 50 percent rate.
• Manuka honey: Certified imports will receive reduced tariffs under a quota arrangement. The notified quota for the remainder of 2026 is 40 tonnes, with a reduced rate for qualifying honey priced at USD 20 to below USD 30 per kg. The annual quota is 200 tonnes, with tariffs falling further over five years.

These provisions create new opportunities for selected New Zealand products while expanding market access for Indian exporters.

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Dairy Protection, Work Visas and Future Changes

India has excluded several sensitive sectors from tariff concessions to protect domestic industries. These include dairy, sugar, edible oils and specified agricultural commodities. Animal meat is also excluded, except for sheep meat covered by the agreement.

The India-New Zealand FTA also introduces temporary work opportunities for eligible Indian nationals.

Two Temporary Employment Entry visa pathways become available from October 20. The combined cap is 5,000 visa holders at any one time. The visas are valid for three years and do not provide a direct pathway to residence.

Applicants must meet New Zealand's immigration requirements, including:

• A qualifying job offer from an accredited employer.
• The required qualifications and English-language standards.
• Applicable health and character requirements.

Further changes will follow over the coming years. From November 16, eligible Indian graduates with PhDs from New Zealand will be able to apply for post-study work visas of up to four years.

A working-holiday scheme for Indian nationals aged 18 to 30 is also planned within two years. It will offer up to 1,000 places annually, with stays of up to 12 months.

Investment and Trade Targets

Beyond tariffs and visas, the agreement includes wider economic commitments. New Zealand has committed to facilitating USD 20 billion in investment into India over 15 years.

The two countries also aim to double bilateral trade in goods and services to NZUSD 7 billion by 2030. As the agreement takes effect, its phased tariff cuts and future visa provisions will shape how businesses, exporters and eligible professionals benefit from the new partnership.