New Zealand’s Parliament Approves Free Trade Agreement with India

New Zealand’s Parliament has passed legislation to bring its new free trade agreement (FTA) with India into effect. The agreement is aimed at reducing tariffs, improving market access, and increasing trade and investment between the two countries.

The legislation was approved by 93 votes to 29, with the opposition Labour Party also supporting the bill. New Zealand Trade Minister Todd McClay said the agreement could provide significant and quick benefits for exporters. He described the deal as a high-quality agreement and said it is expected to come into effect later this year, after the required approval processes are completed.

Under the agreement, around 95% of New Zealand’s exports to India will receive lower tariffs or become completely duty-free. More than half of these products will have zero tariffs from the first day the agreement starts. This is expected to create better opportunities for New Zealand businesses selling goods in the Indian market.

The agreement will also provide duty-free access for Indian goods entering New Zealand. This will give Indian exporters greater access to the New Zealand market and could support stronger trade between the two countries.

As part of the wider economic partnership, New Zealand has also committed to investing $20 billion in India over the next 15 years. The investment commitment is expected to support business cooperation and create opportunities across different sectors.

The free trade agreement was originally signed in April 2026. Bilateral trade between India and New Zealand reached $2.29 billion in the year to June 2026. India is currently New Zealand’s ninth-largest market for goods and services exports.

The agreement will officially take effect once both countries complete their respective domestic approval procedures. Once implemented, the deal is expected to strengthen economic ties and provide businesses in both countries with wider access to each other’s markets.