New Zealand’s Parliament has passed the legislation needed for its free trade agreement (FTA) with India. Lawmakers approved the legislation by 93 votes to 29.

The agreement will reduce tariffs on New Zealand exports to India. Once fully implemented, tariffs will be removed or reduced on 95% of exports.

FTA to Cut Export Tariffs

Under the agreement, 57% of New Zealand exports to India will become duty-free when the FTA takes effect. The share will rise to 95% after full implementation.

New Zealand Trade and Investment Minister Todd McClay said the deal will improve market access for New Zealand businesses.

The kiwifruit industry is also expected to gain from lower tariffs. The industry could save about NZ$125 million in tariffs over five years.

Agreement Covers Key Sectors

The FTA also includes measures for faster border clearance. It is expected to support trade in food, technology, education, tourism and professional services.

New Zealand and India announced the FTA negotiations in March 2025. The agreement is expected to enter into force later this year, after both countries complete their ratification procedures.

The two countries have also set a goal of doubling two-way trade by 2030.

According to an earlier Westpac Institutional Bank report, the FTA could add nearly 0.1% to New Zealand’s GDP over the next decade.