New Zealand’s Parliament has approved legislation to implement its free trade agreement (FTA) with India, clearing a key procedural step towards bringing the pact into force later this year.
The legislation was passed 93–29 on Wednesday, with support from the opposition Labour Party, The Hindu reported.
Under the agreement, tariffs on around 95 per cent of New Zealand’s exports to India will be eliminated or substantially reduced, according to the New Zealand government.
Around 57 per cent of New Zealand’s exports to India will receive duty-free access from the first day of the agreement, while more than half of the products covered under the pact will benefit from immediate tariff-free access.
In return, all Indian goods will receive duty-free access to the New Zealand market. New Zealand has also committed to investing $20 billion in India over the next 15 years.
“For exporters, the benefits are immediate and substantial. We expect this high-quality agreement to enter into force this year, delivering on our promise to complete a free trade agreement with India this term,” said New Zealand Trade Minister Todd McClay.
The agreement was signed by India’s Commerce and Industry Minister Piyush Goyal and McClay in New Delhi on April 27. It will come into effect once both countries complete their respective ratification procedures.
Trade and logistics implications
The agreement is expected to facilitate cross-border trade by speeding up border clearance and providing New Zealand exporters with preferential access to India’s expanding consumer market.
Demand is expected across sectors including food, fibre, technology, education, tourism and professional services, potentially creating additional opportunities for logistics and supply chain operators supporting bilateral trade.
Two-way trade between India and New Zealand stood at $2.29 billion in the year ended June 2026. India was New Zealand’s ninth-largest market for goods and services exports during the period.
The FTA is expected to strengthen trade flows between the two countries by reducing tariff barriers and improving market access for exporters on both sides
