India-New Zealand Economic Partnership Deepens With FTA Approval

New Zealand's Parliament on Wednesday approved the legislation required for the country's free trade agreement (FTA) with India, with lawmakers voting 93-29 in favour, Trade and Investment Minister Todd McClay said.

McClay said the vote reflected strong 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.

Under the agreement, 57 per cent of New Zealand's exports to India will become duty-free once the FTA takes effect. After full implementation, tariffs will be removed or substantially reduced on 95 per cent of exports.

The agreement is expected to particularly benefit New Zealand's kiwifruit industry, which could save around NZ$125 million in tariffs over five years, according to McClay.

The minister said the pact would also facilitate faster border clearance and improve New Zealand businesses' access to India's expanding middle-class market. Demand is growing across areas such as food, technology, education, tourism and professional services.

Negotiations for the FTA were announced in March 2025, and the New Zealand government expects the agreement to enter into force later this year. It will become effective after both India and New Zealand complete their respective ratification procedures.

The agreement is also linked to the broader goal set by Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon of doubling bilateral trade by 2030.

An earlier report by Australia-based Westpac Institutional Bank said India's economic expansion makes it a strategic partner for New Zealand. The report estimated that the FTA could add nearly 0.1 per cent to New Zealand's GDP over the next decade.

The report highlighted India's large consumer market and growth potential, noting that the country has a population of around 1.4 billion, representing roughly one-fifth of the world's population.