New Delhi, Sept 2026 : New Zealand's Parliament on Wednesday approved legislation required to implement the country's free trade agreement (FTA) with India, with lawmakers voting 93-29 in favour of the measure, Trade and Investment Minister Todd McClay said.
McClay described the vote as a strong indication of parliamentary support for the agreement and its expected economic benefits. He said the FTA would provide New Zealand exporters with greater access to India, one of the world's largest and fastest-growing economies.
According to the minister, 57 per cent of New Zealand's exports to India will become duty-free once the agreement enters into force. After the agreement is fully implemented, tariffs will be removed or substantially reduced on 95 per cent of New Zealand's exports to the Indian market.
McClay said New Zealand's kiwifruit industry alone was expected to save around NZ$125 million in tariffs over five years as a result of the agreement.
He also highlighted other expected benefits, including faster border clearance and improved access to India's expanding middle-class consumer base. Demand in India is growing across sectors such as food, technology, education, tourism and professional services, providing opportunities for New Zealand businesses, he said.
The minister noted that negotiations for the FTA were announced in March 2025. The New Zealand government expects the agreement to enter into force later this year, subject to both countries completing their respective domestic ratification procedures.
McClay said the trade pact would enable New Zealand exporters to strengthen commercial ties with India and contribute to the target set by Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon of doubling bilateral trade by 2030.
The parliamentary approval in Wellington marks an important step towards implementation of the agreement, although the FTA will only become operational after the required procedures are completed by both India and New Zealand.
The agreement is expected to expand market access for businesses in both countries and provide a framework for increasing trade and investment ties.
Earlier in August, a report by Australia-based Westpac Institutional Bank highlighted India's growing economic importance for New Zealand and assessed the potential benefits of the recently signed trade agreement.
The report described India as a strategic economic partner for New Zealand, citing its large population and strong growth prospects. It estimated that the FTA could increase New Zealand's gross domestic product by close to 0.1 per cent over the next decade.
“India is one of the world's fastest-growing major economies and offers access to a market of 1.4 billion people – one fifth of the world's population,” the report said.
The agreement comes as both countries seek to deepen economic engagement across multiple sectors. Greater tariff access, streamlined border procedures and expanding consumer demand are expected to create opportunities for New Zealand exporters while strengthening commercial links with the Indian market.
With New Zealand's Parliament now having approved the required legislation, attention will turn to the completion of India's ratification process and the subsequent entry into force of the FTA.
(Disclaimer :The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)
