Lower fees strengthen the case for Indian capital
Venkat Raman
Auckland, September 10, 2026
A cheaper route to Kiwiland
The government has lowered the cost of obtaining approval for overseas investments, extending a reform programme intended to make New Zealand more attractive to international capital.
Deputy Prime Minister and Regulation Minister David Seymour announced on September 10, 2026 that the fee for an initial national-interest risk assessment would fall by $5840, from $22,800 to $16,960. The reduction of almost 26% will take effect on September 11, 2026.
The fee for a mandatory second-stage assessment involving a foreign government investor will fall from $83,700 to $61,800, a reduction of $21,900, or slightly more than 26%.
Although application charges are only one component of a major investment, they can influence the viability of smaller acquisitions, expansion proposals and first-time investments. Overseas investors also face legal, accounting, valuation and due-diligence expenses before a transaction can proceed.
The reduction is therefore more significant for medium-sized companies than for multinational corporations pursuing acquisitions worth hundreds of millions of dollars.
“The government is focused on removing unnecessary barriers to investment and making New Zealand a more attractive place to do business. We have already made it easier. Now we are making it cheaper. This will make it more commercially viable for more people to invest in New Zealand,” Mr Seymour said.
Faster decisions with lower fees
The fee reductions have followed amendments to the Overseas Investment Act that introduced a more risk-based approval system.
Most investments involving screened assets, other than residential land, farmland and fishing quota, must now be decided within 15 working days unless officials identify a potential national-interest concern.
Land Information New Zealand has been given a target of completing straightforward assessments within five working days.
According to Mr Seymour, business and production-forestry applications operating through the new pathways are currently being approved in an average of four working days.
Average processing times across the wider system have fallen from 71 working days when the government entered office to 23 working days, he said.
These changes address a longstanding criticism of the overseas-investment regime: that uncertainty over timing could be as commercially damaging as the likelihood of rejection.
A business negotiating an international acquisition must co-ordinate finance, shareholder approval, regulatory obligations and settlement dates.
A lengthy or unpredictable consent process can raise financing costs, delay expansion and persuade investors to direct their capital elsewhere.
Mr Seymour said the government’s message is that commercially sound, low-risk proposals should move quickly, while applications involving strategic or national-interest concerns should continue to receive closer examination.
Clearer Opportunity for Indian investors
The reforms deserve particular attention in India. New Zealand has traditionally attracted considerable investment from Australia, North America, Europe and parts of East Asia, but investment from India has remained comparatively modest.
That position need not remain permanent.
India has become a major source of global capital, entrepreneurial talent and technological capability. Its companies have developed international strength in information technology, pharmaceuticals, engineering, renewable energy, financial services, automotive components, food production and business-process services.
New Zealand offers political stability, transparent institutions, access to advanced research, high-quality agricultural production and commercial connections across the Asia-Pacific region.
It can also provide Indian companies with a credible base for testing products and developing specialised operations for Australia and the wider Pacific.
The strongest opportunities are likely to arise in productive businesses rather than speculative asset ownership. Indian technology companies could acquire or partner with New Zealand software and cybersecurity enterprises. Pharmaceutical businesses could examine manufacturing, research and distribution opportunities. Renewable-energy investors could participate in electricity generation, storage and energy-management systems.
Indian companies also possess considerable expertise in food processing, logistics, digital payments, engineering and affordable service delivery. These capabilities correspond with areas in which New Zealand needs greater investment, competition and productivity.
Experts say that lower fees will not create investments by themselves.
However, when combined with faster decisions, they remove some of the friction that can discourage companies unfamiliar with the New Zealand regulatory system.
Reset by Free Trade Agreement
The decision has acquired greater significance because it coincides with the expansion of the India–New Zealand economic relationship.
India and New Zealand signed their Free Trade Agreement (FTA) in New Delhi on April 27, 2026, after substantially concluding negotiations in December 2025.
Its tariff and market-access provisions are expected to encourage increased trade in goods and services. The Agreement, which is expected to become effective in October 2026, removes tariffs from Indian exports entering New Zealand and provides improved Indian market access for most New Zealand exports.
It also creates opportunities across services, professional mobility and investment.
Trade agreements do not automatically produce commercial activity.
Capital must produce public value
Government sources said that Land Information New Zealand approved 230 transactions during the latest financial year, representing gross proposed investment of approximately $23.8 billion. That was the highest number of approvals recorded under the comparison provided by the Government, ahead of 201 consents in 2024-25.
The scale of approved transactions demonstrates that foreign investment is already important to New Zealand. The more difficult question is how much of that investment produces additional economic activity.
A foreign acquisition can change the ownership of an existing company without necessarily creating new jobs, factories, exports or research. By contrast, investment in new productive capacity can expand employment, introduce technology and connect New Zealand businesses with international markets.