New Zealand's Parliament has passed the India Free Trade Agreement (FTA) legislation with a 93-29 vote, with Trade and Investment Minister Todd McClay calling it a clear demonstration of strong parliamentary backing for the deal and its economic benefits.
"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 in a statement.
According to McClay, the agreement will make 57% of New Zealand's exports to India duty-free from day one, with tariffs eliminated or significantly reduced on 95% of exports once fully implemented. He said New Zealand's kiwifruit industry alone expects to save around $125 million in tariffs over five years.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
The minister said the FTA also includes faster border clearance and preferential access to India's fast-growing middle class, which he said is demanding high-quality food, fibre, technology, education, tourism and professional services.
He added that the agreement is "future-proofed" through most-favoured-nation commitments for New Zealand's wine and key services sectors.
ALSO READ: India-New Zealand Trade Pact Expected To Come Into Force Next Month: Official
Negotiations on the deal were announced in March 2025. McClay said the government expected the "high quality agreement" to enter into force this year, fulfilling a commitment to complete an FTA with India within the current parliamentary term.
He said exporters would now be able to use the agreement to build new relationships, sell more of the country's products in India, and contribute towards the target set by Prime Ministers Narendra Modi and Christopher 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," McClay said.
The FTA will formally enter into force once both India and New Zealand have completed their respective domestic ratification procedures, the government said.
ALSO READ: 57% Of Exports To India Will Be Tariff-Free, Says New Zealand PM Ahead Of PM Modi's Visit
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
