Trade and Investment Minister, Todd McClay, has welcomed the passing of the India Free Trade Agreement legislation today, saying a 93-29 vote was a clear demonstration of Parliament’s strong support for the agreement.
The FTA will enter into force after both parties have completed their respective ratification procedures.
“The India FTA opens the door for Kiwi exporters to one of the world’s largest and fastest-growing economies. Parliament today overwhelmingly backed the long term benefits the agreement will deliver for all New Zealanders,” says Mr McClay.
“For exporters, the benefits are immediate and substantial. From day one, 57% of New Zealand’s exports to India will become duty-free. Once fully implemented, tariffs are eliminated or significantly reduced on 95% of our exports. That means real savings and real opportunities. The kiwifruit industry alone expects to save around $125 million in tariffs over five years.
“Added to this are faster border clearance and preferential access to a fast-growing middle class that is demanding high-quality food, fibre, technology, education, tourism and professional services.”
The FTA is also future-proofed, through most favoured nation commitments for wine and key services sectors, the Minister said.
“Negotiations were announced in March 2025 and we expect this high quality agreement to enter into force this year, delivering on our promise to complete an FTA with India this term.”
“Exporters will be able to use this agreement to build new relationships, sell more of our world-class products, and contribute to the goal agreed by Prime Ministers Modi and Luxon of doubling two-way trade by 2030.”
“We are already seeing strong momentum as exporters, customers and investors respond to the increased engagement between our countries. This agreement turns India from a market of future promise into a practical opportunity for more New Zealand businesses,” Mr McClay says.
