New Zealand’s Parliament has passed legislation to implement its Free Trade Agreement (FTA) with India, with Trade and Investment Minister Todd McClay describing the 93–29 vote as a strong demonstration of parliamentary support.
The agreement is expected to open greater access for New Zealand exporters to India, one of the world’s largest and fastest-growing economies.
Under the FTA, 57 per cent of New Zealand’s exports to India will become duty-free from the first day, while tariffs on 95 per cent of exports will be eliminated or significantly reduced once the agreement is fully implemented, according to the New Zealand Government.
The kiwifruit industry alone is expected to save around NZ$125 million in tariffs over five years.
The agreement will also provide faster border clearance and preferential access for New Zealand businesses operating across sectors including food, fibre, technology, education, tourism and professional services.
McClay said the deal would create opportunities for exporters to develop new commercial relationships and expand sales in the Indian market.
“India from a market of future promise” would become a “practical opportunity for more New Zealand businesses.”
The agreement also includes most-favoured-nation commitments covering wine and key services sectors.
Negotiations were announced in March 2025, with the New Zealand Government expecting the agreement to enter into force later this year.
The FTA will take effect once both New Zealand and India complete their respective ratification procedures.
The agreement is also linked to the goal announced by Prime Ministers Narendra Modi and Christopher Luxon of doubling two-way trade between India and New Zealand by 2030.
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