New Zealand’s Parliament has approved legislation needed to implement its free trade agreement with India. …reports Asian Lite News Desk
New Zealand’s Parliament on Wednesday approved legislation required to implement the country’s free trade agreement (FTA) with India, with lawmakers voting 93-29 in favour of the measure.
Trade and Investment Minister Todd McClay said the parliamentary vote demonstrated strong support for the agreement and its expected economic benefits. He said the deal would give New Zealand exporters greater access to India, one of the world’s largest and fastest-growing economies.
Under the agreement, 57 per cent of New Zealand’s exports to India are expected to become duty-free when the FTA takes effect. Once fully implemented, tariffs will be removed or substantially reduced on 95 per cent of New Zealand exports to the Indian market.
McClay said the agreement would provide significant benefits for exporters, including the country’s kiwifruit industry. The industry alone is expected to save about NZ$125 million in tariffs over five years, he said.
The FTA is also expected to facilitate faster border clearance and improve market access for New Zealand businesses seeking to tap into India’s expanding consumer base.
McClay said demand from India’s growing middle class was increasing across sectors including food, technology, education, tourism and professional services.
Negotiations for the agreement were announced in March 2025, and the New Zealand government expects the FTA to enter into force later this year.
The agreement will take effect after both New Zealand and India complete their respective domestic ratification procedures.
McClay said the trade deal would support efforts by Indian Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon to double two-way trade between the two countries by 2030.
The parliamentary approval marks another step towards implementing an agreement that New Zealand officials have described as an opportunity to expand commercial ties with India.
India’s economic growth and large consumer market have also drawn attention from financial institutions assessing the potential impact of the trade agreement.
A report by Australia-based Westpac Institutional Bank in August said India’s economic rise made it a strategic partner for New Zealand and suggested that the FTA could add close to 0.1 per cent to New Zealand’s gross domestic product over the next decade.
“India is one of the world’s fastest-growing major economies and offers access to a market of 1.4 billion people – one fifth of the world’s population,” the report said.
The agreement is expected to create greater opportunities for New Zealand exporters across a range of sectors while strengthening economic links between the two countries.
With New Zealand’s parliamentary approval now secured, the remaining ratification process in both countries will determine when the FTA formally comes into effect.
