New Zealand’s parliament passed legislation on September 16, 2026, to implement a free trade agreement (FTA) with India, which would eliminate or significantly reduce tariffs on about 95% of New Zealand exports to India. The bill passed with a vote of 93–29, including support from the opposition Labour Party. The agreement, originally signed in April 2025, is expected to enter into force this year after both nations complete their ratification procedures.

According to New Zealand Trade Minister Todd McClay, more than half of all products covered under the deal would become duty-free from the day it takes effect. 'For exporters, the benefits are immediate and substantial. From day one, 57% of New Zealand’s exports to India will become duty-free,' he stated. McClay added that the FTA includes most-favoured-nation commitments for wine and key services sectors, and that the kiwifruit industry alone expects to save around $125 million in tariffs over five years.

The agreement also provides duty-free access to New Zealand for all Indian goods. Wellington has committed to investing $20 billion in India over the next 15 years. The deal is part of a broader effort to double two-way trade with India by 2030, a goal agreed upon by Prime Ministers Narendra Modi and Christopher Luxon. Two-way trade between the two nations totaled NZ$3.99 billion ($2.29 billion) in the year to June 2026, with India ranking as New Zealand’s ninth-largest goods and services export market.

The FTA is described as a high-quality agreement that includes faster border clearance and preferential access to India’s fast-growing middle class, which is said to be demanding high-quality food, fibre, technology, education, tourism, and professional services. The agreement was announced in March 2025 and is expected to deliver on New Zealand’s promise to complete an FTA with India during the current term.

The deal’s implementation depends on both nations completing their respective ratification processes. The exact timeline for this remains unspecified. The agreement’s impact on Indian industries and the broader economic implications for both countries are not detailed in the available information.

The trade deal represents a significant step in bilateral economic relations between New Zealand and India. It is the first major FTA between the two nations and is seen as a strategic move to enhance trade and investment ties. The agreement’s success will depend on its implementation and the ability of both countries to realize the economic benefits outlined by New Zealand officials.