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New Zealand Parliament clears landmark India trade deal (Img: IANS)
Delhi: New Zealand’s Parliament has passed law required to implement the country’s free trade agreement (FTA) with India, clearing a key step towards the pact coming into force later this year.
Lawmakers voted 93-29 in favour of the legislation on Wednesday, according to New Zealand Trade and Investment Minister Todd McClay. He said the vote reflected strong parliamentary backing for the agreement and its potential economic benefits.
The FTA is expected to significantly improve access for New Zealand exporters to the Indian market. Under the agreement, 57 per cent of New Zealand’s exports to India will become duty-free once it takes effect. When fully implemented, tariffs will be removed or substantially reduced on 95 per cent of exports.
McClay said New Zealand’s kiwifruit industry alone could save around NZ$125 million in tariffs over five years. The agreement will also provide faster border clearance and better access to India’s expanding middle class, with opportunities across food, technology, education, tourism and professional services.
Negotiations for the FTA were announced in March 2025. McClay said the government expects the agreement to enter into force later this year, once both countries complete their respective ratification procedures.
The deal also supports a target set by Indian Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon to double two-way trade by 2030.
An August report by Australia-based Westpac Institutional Bank had highlighted India’s growing importance to New Zealand, describing the country as a strategic economic partner. It estimated that the FTA could add nearly 0.1 per cent to New Zealand’s GDP 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.
