New Zealand Parliament has passed legislation to implement the country’s free trade agreement with India, with MPs voting 93–29 in favour of the bill on Wednesday.
The agreement, signed in New Delhi on April 27, is expected to take effect later this year once both New Zealand and India complete their respective ratification procedures.
Trade and Investment Minister Todd McClay said the parliamentary vote reflected strong support for the deal and the economic opportunities it could create for New Zealand exporters.
“The India FTA opens the door for Kiwi exporters to one of the world’s largest and fastest-growing economies. Parliament today overwhelmingly backed the long term benefits the agreement will deliver for all New Zealanders,” McClay said.
Under the agreement, 57 per cent of New Zealand exports to India are set to become duty-free from the first day it enters into force. Once fully implemented, tariffs will either be removed or significantly reduced on 95 per cent of New Zealand exports to India.
McClay said for exporters, the benefits are immediate and substantial.
With FTA, from day one, 57 per cent of New Zealand’s exports to India will become duty-free. Once fully implemented, tariffs are eliminated or significantly reduced on 95 per cent of our exports.
"That means real savings and real opportunities. The kiwifruit industry alone expects to save around $125 million in tariffs over five years,"he said.
Added to this are faster border clearance and preferential access to a fast-growing middle class that is demanding high-quality food, fibre, technology, education, tourism and professional services. The FTA is also future-proofed, through most favoured nation commitments for wine and key services sectors.
Negotiations for the agreement were announced in March 2025, before the deal was signed the following year.
The Government has also linked the agreement to a goal agreed by Prime Ministers Christopher Luxon and Indian Prime Minister Narendra Modi to double two-way trade between New Zealand and India by 2030.
“Exporters will be able to use this agreement to build new relationships, sell more of our world-class products, and contribute to the goal agreed by Prime Ministers Modi and Luxon of doubling two-way trade by 2030.”
“We are already seeing strong momentum as exporters, customers and investors respond to the increased engagement between our countries. This agreement turns India from a market of future promise into a practical opportunity for more New Zealand businesses.”
The FTA will formally enter into force after both countries have completed their domestic ratification processes.
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