New Zealand’s Parliament passed legislation on Wednesday to implement its free trade agreement (FTA) with India by a 93-29 vote, bringing the landmark pact closer to implementation. Prime Minister Christopher Luxon described the agreement as a “once-in-a-generation” deal that will open access to India’s 1.4 billion consumers while supporting more jobs and higher incomes for New Zealanders.
The parliamentary vote gives the agreement strong backing, with lawmakers from the ruling National Party, opposition Labour Party and ACT New Zealand voting in favour of it. The official parliamentary record shows 93 votes in favour and 29 against at the second-reading stage.
Luxon welcomed the vote, saying the agreement would create new opportunities for businesses by opening the Indian market. “People told me a free trade agreement with India wasn’t possible. Well, today that deal passed its final vote in Parliament. It’s happening,” he wrote in a post on X.
With parliamentary approval secured, the two countries will now move towards completing the remaining domestic and operational steps required for the agreement to take force. Commerce secretary Rajesh Agrawal said on Tuesday that India was working to bring the pact into effect “as soon as possible”, with officials indicating that it could become operational in the second half of October.
The FTA, which is aimed at significantly expanding bilateral trade and investment, was signed in New Delhi on 27 April 2026. The negotiations were completed just nine months after talks began in March 2025.
Tariff cuts and market access
New Zealand’s trade and investment minister Todd McClay said the agreement would provide immediate benefits to New Zealand exporters. From the first day of implementation, to India will become , while tariffs will be eliminated or significantly reduced on 95% of exports once the agreement is fully implemented. The kiwi fruit industry alone expects to save about NZ$125 million in tariffs over five years, according to the New Zealand government.
New Zealand will provide duty-free access across 100% of tariff lines, while India has offered tariff liberalization covering 70% of tariff lines, accounting for about 95% of the value of bilateral trade. Protections have been retained for sensitive sectors, including most dairy products.
The agreement is designed to expand opportunities for Indian exporters in labour-intensive sectors such as textiles and apparel, leather and footwear, gems and jewellery, engineering goods, processed foods, ceramics, carpets and automobiles.
The FTA covers goods as well as services, and includes provisions on temporary entry for skilled professionals, student mobility and cooperation in agriculture and technology.
The two countries have set a target of doubling bilateral trade by 2030, while New Zealand has also committed to facilitate US$20 billion in investment into India over 15 years, focussing on areas such as manufacturing, infrastructure and innovation.