Temporary work visas for 1,667 Indian workers

New Delhi: The India–New Zealand Free Trade Agreement (FTA) will come into effect today. Under the agreement, all 8,284 product categories exported from India to New Zealand will now enjoy duty-free access.

Until now, New Zealand had imposed an average customs duty of 2.2% on Indian products. Duties of up to 10% were levied on around 450 product categories, including textiles, ceramics and automobiles.

In return, India will eliminate or reduce import duties on 70.03% of product categories coming from New Zealand, accounting for 95% of the total import value.

Imports of products such as apples, kiwifruit and honey will be permitted under a quota system. Apple imports will be restricted to 35,000 tonnes in the first year. The quota will increase to 37,500 tonnes, 40,000 tonnes and 42,500 tonnes in the third, fourth and fifth years, respectively. From the sixth year onwards, the quota will be 45,000 tonnes.

India’s average customs duty on products imported from New Zealand, which currently stands at 16.2%, will gradually come down to 9.06%.

Under the agreement, 1,667 Indian citizens will be eligible for temporary three-year work visas every year.

Of these, 1,446 visas will be allocated to 13 skilled sectors facing labour shortages in New Zealand, including mechanical, engineering and construction sectors.

The remaining 500 visas will be available for professionals such as yoga instructors, musicians, chefs and Ayurvedic practitioners.

The maximum number of such visa holders permitted in New Zealand at any given time will be capped at 5,000.