New Zealand's Parliament on Wednesday passed legislation to implement its free trade agreement with India, paving the way for tariff reductions on about 95 per cent of New Zealand's exports to India once the pact is fully implemented.
The legislation was approved by a 93-29 vote, with support from the opposition Labour Party. More than half of the products covered under the agreement will become duty-free from the day the pact comes into force.
New Zealand Trade and Investment Minister Todd McClay said the agreement would provide immediate and substantial benefits for exporters. According to the New Zealand government, 57 per cent of New Zealand's exports to India will become duty-free from day one, while tariffs on 95 per cent of exports will eventually be eliminated or significantly reduced.
Under the agreement, all Indian goods will receive duty-free access to the New Zealand market once the pact takes effect. The deal is expected to improve market access for Indian exporters across sectors including textiles, leather, footwear, engineering goods, processed food, ceramics, carpets and automobiles.
New Zealand has also committed to invest NZ$20 billion (around ₹1 lakh crore) in India over the next 15 years, according to the India Today report.
The agreement includes preferential access for several New Zealand products. The country's Ministry of Foreign Affairs and Trade said tariffs on products such as sheep meat, wool and coal will be removed immediately, while tariffs on seafood and several horticultural products will be phased out over time.
The kiwifruit industry is also expected to benefit from new quota access, while New Zealand said its kiwifruit sector alone could save around NZ$125 million in tariffs over five years.
The India-New Zealand trade agreement was signed in April 2026 following negotiations that began in 2025. The two countries recorded two-way trade of NZ$3.99 billion (around ₹19,500 crore) in the year to June 2026, with India ranking as New Zealand's ninth-largest market for goods and services exports.
The FTA will come into effect after both countries complete their respective domestic ratification and implementation procedures.
