India has signed free trade agreements with more than 40 countries, including the recent one with New Zealand. However, priorities are changing. Deals focus more on mobility of people.

For decades, free trade agreements (FTAs) focused extensively on reducing tariffs, removing import and export quotas, and easing customs barriers for goods. But these days, in addition to the exchange of goods, countries also focus on the movement of people, such as students, professionals, and skilled workers. And India is not alone in getting such arrangements in place.

You would certainly like to know if there is any research highlighting this change in approach. Yes. A study conducted by researchers from the University of Geneva on preferential trade agreements signed between 1960 and 2020 offers interesting insights. Preferential trade agreements are almost similar to free trade agreements. As a part of the research, more than 797 trade agreements signed worldwide between 1960 and 2020 were studied. Researchers found that more than 70 percent of these deals contain some provisions on international migration.

Does the World Trade Organization recognize these provisions? Yes. Such services are covered under the World Trade Organization’s Mode 4 of the General Agreement on Trade in Services.

Do these provisions benefit both trading partners?  Well, the answer is simple. Countries with few tariffs and a small market can offer people mobility. Some countries also face severe skill shortages. So, they might readily agree to provide special visas for healthcare workers, engineers, healthcare professionals, teachers, and researchers as part of trade deals with countries that have this talent. Basically, such deals fill up workforce gaps. On the other hand, a nation like India wants more places for Indians to work and study. So, it is not surprising to see such deals on the rise.

Criticism attracted by free trade agreements

Countries that allow immigration as a part of the deal often face criticism back home. For example, New Zealand’s trade deal with India, signed on April 27, 2026, drew considerable ire from its own politicians and citizens. They believe immigrants take away their jobs. But is such criticism logical? Let’s first focus on visa terms. For a period of three years, 5000 Indian professionals will get Temporary Employment Entry (TEE) visas as part of the free trade agreement. However, these individuals will undergo usual health and character tests. And they would be able to get jobs only in sectors with a genuine shortage of workers. Their visas will be valid for three years, and they will be asked to leave the country after the visa expiry. Also, they won’t be able to reapply for a period of three years. So, it is clear that these applicants won’t be able to get permanent residence or citizenship.

Second, and the most crucial point, is the number of citizens leaving New Zealand. Post the COVID pandemic, many Kiwis have been leaving the country. Last year alone, 74,000 departed New Zealand due to the weak economy, high cost of living, and low wages. Many citizens, including New Zealand’s former prime minister Jacinda Ardern, have migrated to Australia. And this is leaving a massive hole in skilled labor. Trade deals attract skilled migrants. They help in fulfilling these requirements and fill up the workforce.

So, there is no imbalance in the trade deal between India and New Zealand. Despite criticism, the deal is beneficial for both trade partners.

A key component in India’s trade strategy

Mobility provisions are a structural component of India’s trade strategy. But why? Well, India earns foreign exchange through exports of goods and services, foreign investments, pharmaceutical exports, and remittances. Service revenue is a major part of export earnings. Overall, more than 50 percent of the country’s GDP is made up of services-related revenue. Even the World Bank report published in 2024 highlighted that India’s economic health relies on its ability to help its professionals and companies find projects in international markets. Mobility provisions in the FTA reduce barriers to qualification recognition and visa uncertainties for India’s professionals. Thus, mobility provisions are an important part of India’s commercial diplomacy. Except for the United States, Indian negotiators, including Minister of Commerce & Industry, Piyush Goyal, have maintained a very tough stand during negotiations.

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