Virendra Pandit
New Delhi: New Zealand’s parliament on Wednesday passed legislation to implement a free trade agreement (FTA) with India, under which tariffs on about 95 per cent of New Zealand exports to India would be eliminated or significantly reduced, the media reported.
The keenly watched legislation passed by a vote of 93–29, with support from the opposition Labour Party. More than half of all products covered would become duty-free from the day it takes effect.
“For exporters, the benefits are immediate and substantial,” New Zealand Trade Minister Todd McClay said in a statement.
“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.”
Under the deal, all Indian goods will receive duty-free access to New Zealand. Wellington has also agreed to invest USD 20 billion in India over the next 15 years.
Both nations had signed the trade agreement in April 2026.
Their two-way trade totalled NZ$3.99 billion (USD 2.29 billion) in the year to June 2026, with India ranking as New Zealand’s ninth-largest goods and services export market.
The trade deal will become effective after both nations complete their respective ratification procedures.