Venkat Raman
Auckland, February 9, 2025
Investors, construction companies, logistics and other service providers and high-net-worth individuals in India will find New Zealand an attractive destination for profitable engagement as the country opens its borders wider for investments.
Prime Minister Christopher Luxon announced the creation of Invest New Zealand during the State of the Nation Address at a meeting organised by the Auckland Business Chamber at Cordis Hotel on January 23, 2025. Chamber Chief Executive Simon Bridges conducted the meeting.
Benefits of this Visa
On Sunday, February 9, 2025, he used the same platform to announce the creation of two avenues to attract foreign investors, both under the revised Active Investor Plus Visa.
While the renewed benefits of this Visa Programme were not available at press time, based on the programme announced by the Labour government in 2022, people who obtain an Active Investor Plus Visa will have accelerated processes for residence, work, study and business almost immediately and citizenship eligibility between three to five years.
The Two Categories
This Visa provides for two investment pathways: (1) The Growth Category, designed for investors with $5 million seeking high returns through active investments in New Zealand businesses, venture capital and private equity. This Category offers the potential for significant financial gains, albeit with a higher risk profile (2) Balanced Category: Investors in this Category must invest at least $10 million (approximately INR 60 crore). This category strikes a balance between risk and return, allowing investments in a mix of growth-oriented and stable assets, including bonds and property. It would be suitable for those looking to diversify their investment portfolio while maintaining a moderate risk level.
New Zealand Infrastructure Funding and Financing, a government entity has been established by the government to serve as a single point of contact (www.nationalinfrastructure.govt.nz) for investors submitting Market-Led Proposals for innovative solutions.
“Significant amounts of private capital from domestic and international sources will be necessary for New Zealand to modernise and grow its infrastructure base to build a more resilient economy, add to national prosperity and secure international competitiveness. Achieving this requires strengthening the Government’s investment capability, improving coordination within and across different levels of government, and streamlining the process for proponents,” it said.
Market-Led Proposals
The website invites private businesses and investors to work collaboratively with the government.
“The government welcomes market-led proposals from the non-government sector that will deliver innovative ideas, goods, services and infrastructure for the people of New Zealand. Market-led proposals provide a pathway for government and non-government sector collaboration to develop and deliver innovative ideas, goods, services and infrastructure for the people of New Zealand. The focus for market-led proposals is on proposals which meet public interest objectives and value for money and can justify an exclusive negotiation with the government. Such proposals are generally outside the normal planning and competitive procurement processes of government and will offer opportunities to deliver real value, productivity improvements and innovation to the Government and community,” it said.
For further information, please here.
INZBC welcomes changes
Welcoming the changes, India New Zealand Business Council (INZBC) Chairman Bharat Chawla said that while details of the two new categories of The Active Investor Plus Visa are awaited, the announcement will improve confidence.
“We will work with the New Zealand and Indian governments, companies and investors in both countries, trade and professional organisations and promote investment from India to New Zealand. We will support in finding a pathway for the right people. This is a good opportunity to open the border for investments from India,” he said.
Mr Chawla said that changes to the investor category reflected the New Zealand government’s efforts to broaden opportunities for foreign businesses and private investors to participate in the country’s growth and development.
(Photo Supplied)
“On a personal note, I understand that many companies in India’s construction sector look forward to the possibility of investing in infrastructure projects in New Zealand. With their expertise and experience, we could create a win-win situation,” he said.
The New Zealand Infrastructure Funding and Financing has listed several multi-million dollar public projects throughout the country, which could be of interest to overseas investors.
Pre-Approved Status
RBS Intellect Immigration Advisor Soon Lim said that while cumbersome procedures and unnecessary barriers to foreign investment are being removed, foreigners must go through the ‘Pre-Approval’ process managed by New Zealand Trade & Enterprise (NZTE).
“While foreign investment is likely to be allowed in several segments of the New Zealand economy, applicants must satisfy NZTE that their investment will be beneficial to this country, create employment for New Zealand nationals and comply with other requirements such as environment and growth,” he said.
Mr Lim said that the two new categories of investment visas are aimed at helping external and New Zealand businesses grow.
“For the first time, overseas investors will be able to participate in direct investment and managed funds in New Zealand. The details of the scheme are yet to be announced and we hope that foreign investors will be able to have a combination of direct investment and managed funds. For instance, a foreign entity (company or individual) may be allowed to place $3 million as direct investment in a New Zealand venture and $2 million in a managed fund,” he said.
Mr Lim said that businesses in New Zealand can expect stronger growth with the participation of foreign businesses not only in managed funds but also in important projects.
Upfront locked for three years. Direct Investment or managed fund.
Potential Areas of Investment
New Zealand offers a diverse range of investment opportunities across multiple sectors.
Technology and Innovation: New Zealand is a hub for technological innovation, with a thriving start-up ecosystem. Investors can explore opportunities in sectors such as Software Development, Artificial Intelligence, and Biotechnology. The country’s supportive regulatory environment and access to global markets make it an attractive destination for tech investments.
Renewable Energy: With its abundant natural resources, New Zealand is a leader in renewable energy. Investors can participate in projects related to wind, solar, and hydroelectric power, contributing to the country’s sustainability goals while earning attractive returns.
Agriculture and Food Processing: New Zealand’s agricultural sector is globally renowned for its high-quality produce. Indian investors can explore opportunities in food processing, dairy farming, and horticulture. The country’s advanced agricultural practices and strong export markets provide a solid foundation for profitable investments.
Tourism and Hospitality: New Zealand’s stunning landscapes and unique cultural experiences make it a popular tourist destination. Investors can capitalise on the growing tourism industry by investing in hotels, resorts, and other hospitality ventures. The sector’s resilience and potential for growth offer promising returns.
Real Estate: The real estate market in New Zealand, particularly in cities like Auckland, Wellington, Christchurch and Hamilton, presents lucrative investment opportunities. Investors can consider residential, commercial, and industrial properties, benefiting from the country’s stable economic environment and growing population.
The Active Investor Plus Visa is a game-changer for Indian investors seeking to expand their horizons and tap into New Zealand’s vibrant economy. With its flexible investment categories, simplified immigration requirements, and diverse business opportunities, this Visa offers a compelling proposition for those looking to secure their financial future while enjoying the benefits of permanent residency in one of the world’s most desirable countries. As New Zealand continues to foster a conducive environment for foreign investment, Indian investors are well-positioned to reap the rewards of this forward-thinking initiative.
What the Labour government did
On July 20, 2022, the Labour government introduced the Active Investor Plus Category claiming that it was Economic and Regional Development Minister Stuart Nash and Immigration Minister Michale Wood As part of the government’s Immigration Rebalance strategy, changes to the Investor Visa Settings were made to attract experienced, high-value investors bringing growth opportunities to domestic businesses.
Then Economic and Regional Development Minister Stuart Nash and Immigration Minister Michael Wood said, “The new Active Investor Plus visa will replace the old investment visa categories, which although successful in attracting large funds often resulted in passive investment in shares and bonds rather than directly into New Zealand companies, meaning a missed opportunity to attract more active investors who can deliver real benefits to our economy over a long period. We want to encourage active investment into New Zealand, which generates more high-skilled jobs and economic growth compared to passive investment. This new Visa category will also leverage the skills, experience and networks of migrants who will bring their access to global networks and global markets to help Kiwi companies grow faster and smarter.
But unfortunately, it did not work.
Businesses today hope that the new initiative of the Coalition government will be successful and that bureaucracy will fall in line with political, economic and national objectives.
