In a landmark move for trans-Pacific trade, India and New Zealand officially concluded negotiations for a comprehensive Free Trade Agreement (FTA) on Monday, December 22, 2025. The deal is designed to double bilateral trade to $5 billion within the next five years and represents India’s most significant trade pact in the Oceania region to date.
Skilled Professional Visas and Student Mobility
The centerpiece of the agreement for many Indians is the new “Temporary Employment Entry” (TEE) visa pathway. Under this deal, New Zealand will grant an average of 1,667 three-year work visas annually specifically for Indian skilled professionals.
This quota is aimed at addressing labor shortages in New Zealand while providing high-level opportunities for Indians in sectors like IT, healthcare, engineering, and education. Notably, the agreement also recognizes traditional Indian expertise, including yoga instructors, Indian chefs, and AYUSH practitioners. Furthermore, Indian STEM students in New Zealand will now be eligible for three-year post-study work visas.
Market Access and “Dairy Protection”
The trade aspect of the FTA provides a massive boost to Indian exporters. New Zealand has granted 100% duty-free access for all Indian goods starting from Day 1 of the agreement. This is expected to benefit the textile, pharmaceutical, and jewelry industries immediately.
In return, India has opened its markets to 95% of New Zealand’s products. however, the Indian government maintained a firm “red line” regarding the dairy sector. To protect the livelihoods of millions of small-scale Indian dairy farmers, milk and milk products have been entirely excluded from the tariff cuts.
Political Friction in Wellington
While the Indian government has hailed the deal as a victory for “Atmanirbhar Bharat,” the announcement has caused a rift in New Zealand’s coalition government. Foreign Minister Winston Peters has publicly criticized the pact, calling it a “bad deal” because it failed to secure access for New Zealand’s massive dairy industry while “giving away too much” on immigration. Despite this opposition, Prime Minister Christopher Luxon expects the deal to pass through Parliament with the help of opposition votes.
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