New Zealand’s Parliament has passed the Free Trade Agreement (FTA) with India, marking a significant step towards implementing a trade pact aimed at expanding economic ties between the two countries. Prime Minister Christopher Luxon described the agreement as a “landmark” deal and said it would create more opportunities for New Zealand businesses while supporting more jobs and higher incomes for New Zealanders. The parliamentary approval comes after India and New Zealand signed the agreement earlier this year following negotiations focused on improving market access for exporters from both countries.

Luxon welcomed the passage of the agreement, saying it fulfilled a commitment made by his National Party to secure an FTA with India during its first term in government. The prime minister said the deal would allow more New Zealand products to reach Indian consumers and strengthen commercial ties between the two economies. His comments came after lawmakers voted to approve the legislation required for New Zealand to implement its commitments under the trade agreement. The government has presented the pact as an opportunity to diversify New Zealand’s export markets and increase access to India’s large and growing economy.

The India-New Zealand FTA was signed in New Delhi on April 27, 2026, following negotiations between the two countries. Under the agreement, New Zealand is set to receive tariff reductions or elimination on about 95% of its exports to India by trade value. India, meanwhile, will receive duty-free access for all its exports to New Zealand. The agreement covers a broad range of goods and is intended to reduce trade barriers while creating more predictable conditions for businesses operating between the two markets.

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Indian exporters are expected to gain improved access to New Zealand across sectors including textiles and apparel, leather and footwear, gems and jewellery, engineering products and processed foods. New Zealand has also committed to a $20 billion investment programme in India over 15 years as part of the wider economic partnership. India has retained protections for several sensitive sectors, however, with nearly 30% of its tariff lines excluded from concessions. Dairy and some agricultural products are among the areas where India has maintained safeguards in the agreement.

The agreement received support from New Zealand’s opposition Labour Party during the parliamentary process, helping the legislation secure the required majority. The vote nevertheless came amid differing views within the governing coalition over some elements of the pact. Its passage means New Zealand has completed an important domestic step towards putting the agreement into effect. The implementation process will now move towards the remaining formal requirements, after which the tariff and market-access commitments can begin operating according to the terms agreed by the two governments.

For New Zealand, the agreement provides exporters with greater access to the Indian market and is part of efforts to broaden the country’s international trade relationships. Businesses in sectors such as agriculture, food and beverages and other export industries could gain from improved market access, depending on the specific provisions and tariff schedules applicable to their products. For India, the pact offers duty-free access to New Zealand for its exports while providing opportunities for labour-intensive industries to expand their presence in the market.

The parliamentary approval is therefore an important milestone in the India-New Zealand economic relationship. The agreement is expected to lower trade barriers, expand opportunities for businesses and encourage greater investment between the two countries. With New Zealand’s Parliament having cleared the legislation, attention will now turn to the final implementation process and the date on which the FTA comes into force. Indian and New Zealand businesses will then be able to assess the practical impact of the new tariff arrangements and market-access provisions on bilateral trade.

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