New Zealand’s Parliament on Wednesday approved legislation to implement its free trade agreement (FTA) with India, bringing the pact closer to taking effect. The bill passed 93-29, with lawmakers from the ruling National Party, opposition Labour Party and ACT New Zealand voting in favour.
Commerce secretary Rajesh Agrawal said India was working to bring the pact into force “as soon as possible”, with officials indicating it could become operational in the second half of October.
India-New Zealand's ambitious FTA
New Zealand Prime Minister Christopher Luxon described the agreement as a “once-in-a-generation” deal that will open access to India’s 1.4 billion consumers while supporting more jobs and higher incomes for New Zealanders. “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,” he wrote on X.
The FTA, signed in New Delhi on 27 April after nine months of negotiations, aims to significantly expand bilateral trade and investment. India-New Zealand trade in goods and services totalled $2.4 billion in 2024, according to a Press Trust of India report. Merchandise trade fell about 11% to $1.15 billion in 2025-26 from $1.3 billion a year earlier, with India’s exports at $566.51 million and imports at $589.1 million, the report said.
{{/usCountry}}The FTA, signed in New Delhi on 27 April after nine months of negotiations, aims to significantly expand bilateral trade and investment. India-New Zealand trade in goods and services totalled $2.4 billion in 2024, according to a Press Trust of India report. Merchandise trade fell about 11% to $1.15 billion in 2025-26 from $1.3 billion a year earlier, with India’s exports at $566.51 million and imports at $589.1 million, the report said.
{{/usCountry}}The two countries have set a target of doubling bilateral trade by 2030. New Zealand has also committed to facilitate US$20 billion in investment into India over 15 years, focusing on manufacturing, infrastructure and innovation.
Duty-free exports and tariffs
New Zealand trade and investment minister Todd McClay said the FTA would provide immediate benefits to exporters. From the first day of implementation, 57% of New Zealand’s exports to India will become duty-free, while tariffs will be eliminated or significantly reduced on 95% of exports once fully implemented. The kiwi fruit industry alone expects to save about NZ$125 million in tariffs over five years, according to the New Zealand government.
New Zealand will provide duty-free access across 100% of tariff lines, while India has offered tariff liberalization covering 70% of tariff lines, accounting for about 95% of bilateral trade value.
Protections remain for sensitive sectors, including most dairy products. The agreement is also designed to expand opportunities for Indian exporters in sectors such as textiles, leather, gems and jewellery, engineering goods, processed foods, ceramics, carpets and automobiles.