Risk to NZ-India relations ahead of Modi's visit as coalition moves to restrict immigration settings
Thursday, 2 July 2026
The Government has made decisions on tightening immigration settings for Indian nationals, but is worried about this news becoming public ahead of a visit by Indian Prime Minister Narendra Modi later this month.
The Post understands from an official source that work to implement these changes is already under way, despite Immigration Minister Erica Stanford insisting on Tuesday no “final decisions” had not been made and Trade Minister Todd McClay calling the matter “misinformation”.
It’s understood some quarters of Government are wary of the highly sensitive changes becoming public ahead Modi’s arrival in Auckland. He has championed the Indian side’s immigration gains in the New Zealand India Free-Trade Agreement (FTA).
Following queries from The Post Stanford confirmed “initial decisions” on immigration changes had been made but maintained that these were not yet “final”.
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The matter first came to light after Foreign Affairs Minister Winston Peters last week claimed the National Party was “covertly” and in “bad faith” restricting immigration settings for India and India alone.
McClay said Peters was “wrong” about this, going as far as accusing him of “promoting misinformation for the sake of gaining votes.”
The Post asked Stanford if she had made decisions to tighten immigration settings for Indian nationals and if there was concern about this information becoming public before Modi visits.
“Initial decisions consistent with the FTA have been sent to other ministers for feedback, prior to immigration instructions being finalised,” she said in a written statement.
“We have always been clear that immigration settings are specific to each Free Trade Agreement.
“As is standard practice Immigration New Zealand is preparing for implementation, subject to final decisions being made.”
Peters launched a blistering campaign against the FTA in late 2025, claiming the 5000 temporary employment entry (TEE) visas secured in the deal could translate to 20,000 migrants once spouses and children were included.
It marked the start of an increasingly bitter divide between NZ First and its coalition partners over the outcomes of the deal.
Modi is widely expected to visit Auckland in July - his highly anticipated visit will be the most high-profile head of state visit to New Zealand since Chinese President Xi Jinping’s trip in 2014.
The trip comes shortly after New Zealand and India signed an FTA that - once in force - will eliminate or reduce tariffs on 95% of New Zealand's exports.
While New Zealand achieved limited access to India’s highly protected domestic dairy market, the deal has been hailed as historic and a huge get for exporters wanting to do business in one of the biggest economies in the world.
The FTA has been inked, but it’s not yet law. MPs from National, ACT, and Labour voted it through first reading last Thursday.