New Zealand’s Parliament has approved legislation to implement the Free Trade Agreement (FTA) with India, bringing the bilateral trade pact closer to taking effect.
The legislation was passed by 93 votes to 29, with support from the ruling National Party, Labour and ACT. The agreement was signed by India and New Zealand on April 27, 2026.
New Zealand Prime Minister Christopher Luxon called the agreement a “landmark” deal, saying it would create more opportunities for exporters and workers.
“People told me a Free Trade Agreement with India wasn’t possible. Well, today that deal passed its final vote in Parliament. It’s happening. This landmark deal means more jobs, higher incomes for Kiwis. It means more New Zealand products being sold in India by opening the door to 1.4 billion Indian consumers,” he wrote in a post on X.
“It’s one of the ways we will grow the economy to help you get ahead – fixing the basics and building the future.”
What the trade pact offers
The agreement gives Indian exporters duty-free access to New Zealand across 100 per cent of tariff lines. It is expected to support labour-intensive sectors including textiles and apparel, leather and footwear, gems and jewellery, engineering goods and processed foods.
New Zealand, meanwhile, has secured market access in India across 70.03 per cent of tariff lines, covering around 95 per cent of bilateral trade. India has kept 29.97 per cent of tariff lines outside the agreement, including sensitive areas such as dairy and several agricultural products.
Investment and tariff changes
New Zealand has also committed to investing USD 20 billion in India over 15 years under the agreement.
Tariffs on 30 per cent of New Zealand’s tariff lines will be removed immediately, while another 35.60 per cent will be phased out over three, five, seven or 10 years. Selected products, including wine, pharmaceutical drugs and certain metals, will also receive tariff reductions.
“The India FTA opens the door for Kiwi exporters to one of the world’s largest and fastest-growing economies,” Trade and Investment Minister Todd McClay said. “Parliament today overwhelmingly backed the long term benefits the agreement will deliver for all New Zealanders,”
India’s Commerce Secretary Rajesh Agrawal has said New Delhi wants the agreement to come into force “as soon as possible”, with October being cited as a possible timeline.