NEW DELHI: The India–New Zealand Free Trade Agreement (FTA) marks a step forward in promoting cross-border mobility, creating new opportunities for entry, residence, and employment for Indian professionals, students and young workers while helping address New Zealand’s growing skills shortages.
Under the agreement, New Zealand has committed to improved entry and stay provisions for Indian nationals, including work rights during study, post-study work pathways, dedicated visa arrangements and an expanded Working Holiday visa framework. These measures aim to strengthen people-to-people ties and broaden global exposure for Indian youth.
A key feature of the pact is the creation of a new Temporary Employment Entry Visa pathway for Indian professionals in skilled occupations. The pathway allows for up to 5,000 visas at any given time, with each visa permitting a stay of up to three years. The scheme covers a wide range of Indian professions such as AYUSH practitioners, yoga instructors, Indian chefs and music teachers, alongside high-demand sectors including information technology, engineering, healthcare, education and construction, thereby deepening workforce mobility and services trade between the two countries.
New Zealand’s Trade and Investment Minister Todd McClay said the agreement would help bridge critical skills gaps in the domestic economy. “To better provide the skills to grow the New Zealand economy, the Agreement establishes a process for up to an average of 1,667 skilled three-year work visas per year,” he said. These visas will be non-renewable and targeted at priority occupations facing shortages, including doctors, nurses, teachers, ICT professionals and engineers.
According to McClay, eligible sectors will be drawn from New Zealand’s skills-shortage ‘Green List’, with all existing immigration screening and qualification requirements remaining unchanged. The government will also retain the flexibility to update the Green List in line with evolving labour-market needs.
In addition, the FTA aligns New Zealand’s Working Holiday Scheme with provisions under Australia’s FTA with India, providing up to 1,000 places annually. The move is expected to support New Zealand’s tourism and rural sectors, which continue to face workforce constraints.
The mobility provisions assume added significance against the backdrop of New Zealand’s demographic challenges. Some reports have projected that by 2045 the country could face a shortfall of at least 250,000 workers, raising concerns over the sustainability of pensions and healthcare systems. The FTA positions India as a potential long-term supplier of skilled and semi-skilled talent to meet these needs.
Beyond labour mobility, the agreement is seen as beneficial for Indian companies seeking a foothold not only in New Zealand but also across the Pacific Island countries, where New Zealand plays a strategic economic role. It also opens the door to future discussions on the possible recognition of Indian traditional medicine systems such as AYUSH.
The pact further strengthens the strategic partnership between the two economies and expands avenues for cooperation on global and regional issues. New Zealand is a member of major groupings including the Five Eyes intelligence network, OECD, APEC, CPTPP, RCEP and IPEF, and has FTAs with the EU, Australia, Singapore, China, South Korea and Malaysia.
Alongside mobility gains, the FTA grants tariff-free access for 100% of Indian exports to New Zealand, addressing earlier limitations faced by Indian goods compared to other exporters and complementing the broader people-to-people and services-led engagement envisioned under the agreement.