New Zealand’s Parliament has passed legislation implementing the India-New Zealand Free Trade Agreement (FTA), bringing the bilateral trade pact closer to taking effect.
The legislation cleared its final vote on Wednesday, September 16, with lawmakers voting 93-29 in favour. New Zealand Trade and Investment Minister Todd McClay said the result showed strong parliamentary support for the agreement.
Prime Minister Christopher Luxon described the agreement as a “landmark” deal and said it would create more jobs and higher incomes for New Zealanders while opening India’s large consumer market to Kiwi exporters.
“People told me a Free Trade Agreement with India wasn’t possible. Well, today that deal passed its final vote in Parliament,” Luxon said in a post on X.
India-New Zealand FTA Moves Closer To Implementation
India and New Zealand signed the FTA in New Delhi on April 27, 2026, following the conclusion of negotiations in December 2025.
The agreement now needs to complete the remaining implementation processes before it can enter into force. India’s Commerce Secretary Rajesh Agrawal has said New Delhi is looking to bring the pact into effect as soon as possible.
New Zealand’s government said the agreement will make 57% of its exports to India duty-free from day one, with tariffs eliminated or significantly reduced on 95% of its exports once fully implemented.
Duty-Free Access For Indian Exports
A major feature of the agreement is New Zealand’s commitment to provide zero-duty access for 100% of its tariff lines covering Indian exports once the FTA enters into effect.
The agreement is expected to benefit Indian labour-intensive and manufacturing sectors, including textiles and apparel, leather and footwear, engineering goods, pharmaceuticals and food processing.
India’s Commerce Ministry has said the pact is designed to improve export competitiveness and provide greater access to New Zealand’s market.
India Keeps Sensitive Sectors Protected
While New Zealand has offered broad access to Indian exports, India has offered tariff concessions on about 70.03% of its tariff lines, covering approximately 95% of bilateral trade.
Around 29.97% of tariff lines remain excluded, particularly products considered sensitive from a domestic perspective.
These exclusions include dairy products and several agricultural commodities, along with sugar and other sensitive goods.
For selected products such as apples, kiwifruit and Mānuka honey, the agreement provides limited market access through tariff-rate quotas and other safeguards.
USD 20 Billion Investment Commitment
The FTA also includes a commitment by New Zealand to facilitate USD 20 billion in investment in India over 15 years.
According to India’s Commerce Ministry, the investment framework is intended to support manufacturing, infrastructure, innovation and job creation. The agreement also contains a mechanism allowing India to adjust market access if the investment commitment falls short.
Services And Worker Mobility
The agreement goes beyond merchandise trade. India’s Commerce Ministry says New Zealand has made commitments covering 118 services sectors, with Most-Favoured-Nation commitments across around 139 sub-sectors.
The pact also provides new mobility pathways for Indian professionals and students, including a Temporary Employment Entry visa pathway with a quota of 5,000 professionals at any given time.
It also provides for 1,000 Working Holiday visas for young Indians annually and expanded post-study work opportunities.
Agriculture Cooperation
India and New Zealand have also agreed to strengthen cooperation in agricultural productivity.
The framework includes cooperation and planned Centres of Excellence focused on apples, kiwifruit and honey, covering areas such as research, technical assistance, orchard management, post-harvest practices, supply chains and food safety.
At the same time, market access for sensitive agricultural products is subject to safeguards and calibrated arrangements.
What Happens Next?
The parliamentary approval in New Zealand removes a major legislative step towards implementation of the India-New Zealand FTA.
Once the agreement enters into force, Indian exporters will receive duty-free access across New Zealand’s tariff lines, while New Zealand exporters will receive progressively expanded access to the Indian market.
The pact is expected to deepen trade, investment and services ties between the two countries while creating new opportunities for businesses, professionals and students.
