In a landmark move set to redefine bilateral relations, New Zealand and India have successfully concluded a comprehensive Free Trade Agreement (FTA). Announced on December 22, 2025, the pact promises to unlock significant opportunities in trade, skilled worker mobility, and educational collaboration between the two nations.
Skilled Mobility & Work Visas: A New Pathway for Indian Professionals
A cornerstone of the agreement is the creation of a dedicated pathway for skilled Indian workers. According to the New Zealand government, the deal will allow for an average of up to 1,667 three-year skilled work visas to be issued annually. These visas are non-renewable and will be specifically targeted at professions listed on New Zealand's skills shortage 'Green List'.
Key occupations set to benefit include doctors, nurses, teachers, information and communication technology (ICT) professionals, and engineers. The New Zealand authorities have emphasized that all standard immigration checks for qualifications, experience, and character will remain firmly in place. The government also retains the right to update the Green List as per evolving labour market demands.
Beyond the skilled visa stream, the FTA also enhances opportunities for young Indians through the Working Holiday Scheme. Aligned with a similar provision in Australia's trade deal with India, this scheme will grant up to 1,000 Indian citizens each year the chance to undertake working holidays in New Zealand, supporting sectors like tourism and rural industries.
Unprecedented Market Access and Tariff Elimination
The trade component of the agreement is notably expansive. The FTA will eliminate or reduce tariffs on a massive 95% of New Zealand's exports to India, marking one of the highest coverage levels in any trade deal India has signed. From the very first day the agreement takes effect, nearly 57% of New Zealand's exports will enter the Indian market duty-free.
New Zealand's Trade and Investment Minister, Todd McClay, highlighted the significance of this access to a market of nearly 1.4 billion consumers. The deal includes provisions to streamline trade processes and improve market access across various sectors, promising a smoother flow of goods and services.
Strengthening Education and Innovation Partnerships
The FTA builds upon a growing foundation of academic cooperation. Earlier in 2025, during a visit by New Zealand's Prime Minister to IIT Delhi, several Memorandums of Understanding (MoUs) were signed between universities of both countries. These partnerships, such as those between the University of Auckland and Manipal Academy of Higher Education and IIT Kharagpur, aim to boost academic exchange, joint research, and student mobility.
Key initiatives launched include the New Zealand Centre Innovation Fellowship for technical collaboration and a Virtual Internship Programme offering 30 IIT Delhi students remote internships with New Zealand companies. Furthermore, a NZ$260,000 partial scholarship package under the New Zealand Excellence Awards (NZEA) 2025 was announced to support Indian students.
With around 7,300 Indian students already in New Zealand as of 2024, the combined effect of the FTA, easier mobility, and deeper institutional ties is expected to significantly bolster this number.
Leadership Hails a Historic Agreement
Prime Minister Narendra Modi welcomed the conclusion of the agreement, calling it an "important moment for India-New Zealand relations." In a post on social media platform X, he stated the deal would open up "numerous opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth." The agreement is widely viewed as a strategic step that will deepen the economic and people-to-people links between the two democracies for years to come.
