New Zealand Parliament Clears India FTA, Pact Moves Closer To Implementation
New Zealand’s Parliament has approved legislation to implement the India-New Zealand Free Trade Agreement (FTA), with lawmakers voting 93-29 in favour of the bill. The approval marks a key step towards bringing the trade agreement into force.
India and New Zealand signed the FTA on April 27, 2026, and India has welcomed the New Zealand Parliament’s approval. The agreement will come into force after both countries complete their respective ratification procedures. Indian officials have indicated that implementation could take place in October.
Under the agreement, New Zealand will provide duty-free access for 100% of Indian exports across all tariff lines. This includes key labour-intensive sectors such as textiles and apparel, leather and footwear, gems and jewellery, engineering goods and processed foods. The Indian Ministry of Commerce said textile and apparel products, including garments, fabrics, yarn and carpets, currently face tariffs of up to 10% in New Zealand, which will be reduced to zero under the agreement.
The agreement also provides for a US$20 billion investment commitment by New Zealand in India over 15 years, covering areas including manufacturing, infrastructure and innovation.
For New Zealand exports to India, the country has received market access on 70.03% of tariff lines, covering around 95% of bilateral trade value, while 29.97% of tariff lines have been excluded, primarily covering products considered sensitive from India’s domestic perspective.
Around 30% of India’s tariff lines will receive immediate duty elimination, while a further 35.60% will see tariffs phased out over three, five, seven or 10 years. Products covered by immediate tariff elimination include wood, wool, sheep meat and raw hides.
New Zealand’s Trade and Investment Minister Todd McClay said 57% of New Zealand’s exports to India would become duty-free from the first day of implementation, while tariffs on 95% of its exports would be eliminated or significantly reduced once the agreement is fully implemented.
The FTA also includes provisions on services, investment, agriculture, mobility, research and innovation, technology, renewable energy, digital services and infrastructure. New Zealand has committed across 118 services sectors, with Most-Favoured Nation treatment in 139 sectors.
For Indian professionals, the agreement includes a Temporary Employment Entry visa pathway with a quota of 5,000 skilled Indians, while a Working Holiday Visa arrangement will allow 1,000 young Indians annually to travel to New Zealand for up to 12 months. Student mobility and post-study work provisions are also included.
The parliamentary approval brings the India-New Zealand FTA closer to implementation and establishes a framework covering trade in goods and services, investment, market access and professional mobility.
