New Zealand and India have begun a new chapter in their economic and strategic relations. The New Zealand Parliament passed legislation on Wednesday that enacts the Free Trade Agreement (FTA) with India, receiving an overwhelming majority of votes.
Under this historic agreement, tariffs imposed on approximately 95% of New Zealand's exports to India will either be completely eliminated or significantly reduced. The vote on the bill recorded 93 'yes' votes and only 29 'no' votes. Even the main opposition party, the Labour Party, openly supported the agreement based on the country's interests and strengthening trade ties with India.
A key feature of the deal is that upon its entry into force, customs duties on over half of the goods will immediately become zero. New Zealand Trade Minister Todd McClay expressed satisfaction with this decision, noting that the agreement will take effect this year, providing immediate and substantial benefits to exporters.
As part of this trade agreement, New Zealand has fully opened its markets to India. All goods sent from India to New Zealand will gain duty-free access (100% duty-free access). Furthermore, the Wellington government has committed to investing $20 billion USD in India over the next 15 years.
It should be noted that both countries signed this agreement in April of this year. As of June 2026, bilateral trade between them reached NZD 3.99 billion ($2.29 billion USD), and India is New Zealand's ninth-largest export market. The agreement will be fully implemented after all legal and official procedures are completed in both countries.
