New Zealand has struck a free trade deal with India, but right-wing party NZ First warned it gives too much away on immigration and angry Kiwis expressed concerns about new employment visas for Indians.
The new agreement is expected to be formally signed off on next year, but if NZ First continues to withhold support it will need the help of the opposition to pass.
Trade and Investment Minister Todd McClay announced the conclusion of the Free Trade Agreement on Monday following nine months of negotiations, and said it would deliver thousands of jobs and give New Zealanders “unprecedented access to 1.4 billion Indian consumers”.
The agreement will eliminate or reduce tariffs on 95% of exports and is expected to benefit the fruit, meat, wool, coal, and forestry industries, but does not remove tariffs on dairy, and adds 1,667 three-year Temporary Employment Entry Visas a year along with 1,000 working holiday places – matching India’s FTA with Australia.
The Temporary Employment Entry Visa places are for occupations where New Zealand has a “skills shortage”, including in ICT, engineering, and health, as well as in Indian professions such as Indian traditional medicine practitioners, music teachers, chefs and yoga instructors.
The deal places no numerical limits on Indian students, guarantees them the right to work 20 hours per week, and provides post-study working visas for up to two years for bachelor’s graduates, three years for STEM bachelor’s degree and master’s degree holders, and up to four years for PhD graduates.
New Zealand First is regrettably opposed to the India Free Trade Agreement announced today.
We consider the India-New Zealand Free Trade Agreement to be neither free nor fair.
Regrettably, this is a bad deal for New Zealand. It gives too much away, especially on immigration,…
— Winston Peters (@winstonpeters) December 22, 2025
NZ First leader Winston Peters called the agreement a “bad deal for New Zealand” that “gives too much away, especially on immigration” and encourages migration from India, and said it should have included dairy.
“On a per capita basis, National has offered far greater access for India to our labour market than did Australia or the United Kingdom to secure their FTAs. This is deeply unwise given New Zealand’s current labour market conditions, with too many New Zealanders in unemployment or doing it tough economically,” he said.
“New Zealand First looks at all proposed changes on migration from the same standpoint: do they protect the ability of New Zealanders to find meaningful employment as well as the integrity of our immigration system?
“The India deal fails that test. By creating a new employment visa specifically for Indian citizens, it is likely to generate far greater interest in Indian migration to New Zealand – at a time when we have a very tight labour market.”
Mr Peters said his party was also concerned the deal would prevent future governments from changing work rights for Indian students, both while they are studying and after the graduate.
Many New Zealanders expressed anger over the agreement on social media, saying they were vehemently opposed to more immigration from India.
“You have opened the floodgates to destroy our nation. Resign in shame,” one person said in a comment directed to Prime Minister Christopher Luxon.
“No one voted for an inexhaustible flow of Indians into New Zealand,” said another.
Others referred to the recent revocation of hundreds of commercial licences belonging to New Zealand truck drivers, with one writing: “How many Indian immigrants with fake qualifications are you letting in like you did truck drivers? Are doctors and nurses next?”
Header image: Left, Christopher Luxon with Indian Prime Minister Narendra Modi. Right, Mr Luxon paints a red dot on his face for Diwali in October (Facebook).
