India-New Zealand FTA: Temporary Employment Entry offers 5,000 work visas for skilled Indians — check key features

India and New Zealand finalised a free trade agreement (FTA) on Monday, granting duty-free entry for 100% of Indian exports, including critical sectors like textiles, gems and jewellery, leather footwear, and more.

Enhanced workforce and student mobility

The agreement introduces a Temporary Employment Entry (TEE) visa specifically for Indian professionals. This pathway caps at 5,000 visas at any time, allowing stays of up to 3 years. It targets both traditional Indian expertise—such as yoga instructors, AYUSH practitioners, and chefs—and high-demand fields like IT, healthcare, engineering, and education.

Marking a historic first, New Zealand has established a dedicated channel for Indian students, focusing on easier mobility and post-study work permits.

Services and investment commitments

India will gain improved access to approximately 118 service sectors in New Zealand, spanning telecommunications, finance, tourism, and environmental services. Furthermore, Most-Favoured Nation (MFN) status will be applied to 139 sub-sectors.

On the investment front, New Zealand has pledged USD 20 billion in Foreign Direct Investment (FDI) over the next 15 years. This follows a similar landmark commitment of USD 100 billion previously secured by India from the EFTA bloc.

Economic impact and implementation

Signed by Commerce Minister Piyush Goyal and New Zealand's Trade Minister Todd McClay, the pact aims to double bilateral trade to USD 5 billion within five years.

Commenting on the pact, Prime Minister Narendra Modi said it will greatly benefit farmers, youth, women, MSMEs, artisans, startups, students, and innovators.

"The investment commitment of $20 billion by New Zealand will further strengthen our cooperation in agriculture, manufacturing, innovation and technology, paving the way for a more prosperous and dynamic future for both countries," PM Modi said in a social media post.

New Zealand Prime Minister Christopher Luxon hailed the deal as a "once-in-a-generation agreement", emphasising access to India's massive population and its trajectory toward becoming the world's third-largest economy.

The FTA is slated for implementation by year-end, pending approval from the New Zealand Parliament and the Indian Union Cabinet. Goyal noted that this represents India's ninth major trade agreement recently signed with developed nations.

"At the heart of the agreement is the empowerment for exports, agricultural productivity, student mobility, skills, investment and services," Goyal said.

McClay, who is leading a 40-member delegation, said it is a high-quality FTA.

"FTA reduces friction, provides certainty, sets clear rules and makes it easier for businesses to build relationships," he added.

Previously, New Zealand imposed peak tariffs of up to 10% on essential Indian exports, including automobiles, auto components, carpets, and ceramics.

Under the new agreement, India has liberalised 70% of its tariff lines—representing 95% of bilateral trade value—while keeping nearly 30% of product categories excluded to safeguard domestic interests.

Key exclusions and protections

To protect local farmers and industries, India has excluded several sensitive items from the pact, including

Dairy: Milk, cream, whey, yoghurt, and cheese.

Agriculture: Onions, almonds, corn, peas, chana, sugar, and artificial honey.

Resources: Various animal products (excluding sheep meat), oils and fats, arms, ammunition, and primary metals like aluminium and copper.

New Zealand’s market access

India will provide immediate duty-free entry for specific New Zealand goods, such as:

Raw Materials: Wooden logs, coking coal, and metal/wood scrap.

Animal Products: Sheep meat and raw hides.

For other products, including malt extract, petroleum oil, and specific machinery, India will phase out levies over periods of 3, 5, 7, and 10 years. New Zealand will also see tariff reductions on wine, pharmaceutical drugs, and various steel and iron articles.