New Zealand agrees free trade deal with India

New Zealand announced on Monday that it has reached a comprehensive free trade agreement with India, eliminating tariffs on 95 percent of New Zealand exports to the South Asian nation.

Trade and Investment Minister Todd McClay said the deal, expected to take effect in the first half of next year, would give New Zealand exporters greater access to India’s 1.4 billion consumers and generate significant economic benefits, including new jobs and higher export earnings.

The agreement fulfils a 2024 pledge by the National Party-led coalition government after earlier negotiations under the previous Labour administration failed to conclude a deal.

However, the pact has drawn criticism from within the coalition. Foreign Affairs Minister Winston Peters, leader of coalition partner New Zealand First, described the agreement as unfair, arguing it concedes too much on immigration while delivering limited gains for key sectors such as dairy.

Under the deal, entry rules will be eased for some Indian workers, including a quota of 1,667 temporary visas annually for sectors such as information technology, engineering and healthcare. It also introduces a working holiday scheme for up to 1,000 young people and allows Indian students to work part-time while studying.

Despite the criticism, McClay defended the agreement, saying it would help secure workers for tourism and rural industries and strengthen New Zealand’s global trade position.

India’s Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon both welcomed the deal, describing it as a milestone that would deepen trade, investment and innovation ties between the two countries.