New Zealand Parliament passes legislation to implement India FTA

New Zealand’s lower house gave final parliamentary approval on Wednesday for the legislation needed to bring its free‑trade agreement (FTA) with India into force, passing the measure 93 votes to 29. The vote was supported by members of the governing National Party, the opposition Labour Party and ACT New Zealand, and was welcomed by Prime Minister Christopher Luxon, who described the accord as a once‑in‑a‑generation deal that will open New Zealand businesses to India’s 1.4 billion‑person market.

The agreement, signed in New Delhi on 27 April 2026 after negotiations that began in March 2025, will make 57 % of New Zealand’s exports to India duty‑free from day one and lift tariffs on about 95 % of exports once fully implemented. The kiwi‑fruit sector alone anticipates saving roughly NZ$125 million in tariffs over five years. New Zealand will grant duty‑free access across all tariff lines, while India will liberalise about 70 % of its lines, covering roughly 95 % of bilateral trade value. Both governments aim to double trade by 2030, and New Zealand has pledged to facilitate US$20 billion of Indian investment over the next 15 years in manufacturing, infrastructure and innovation.

The FTA, which also covers services, skilled‑worker mobility, student exchanges and cooperation in agriculture and technology, retains protections for sensitive sectors such as most dairy products. It is expected to create new opportunities for Indian exporters in labour‑intensive industries like textiles, apparel, leather, gems, engineering goods and automobiles, while providing New Zealand exporters with broader market access and higher income potential. With parliamentary backing secured, officials from both sides will now complete the remaining domestic and operational steps required for the agreement to take effect, potentially as early as the second half of October.