India-New Zealand FTA Clears New Zealand Parliament: 100% Duty-Free Access for Indian Goods, $20 Billion Investment Pledge

New Delhi: India and New Zealand have taken a major step toward strengthening their economic ties after the New Zealand Parliament approved legislation to implement the India-New Zealand Free Trade Agreement (FTA) by an overwhelming majority.

The bill was passed with 93 votes in favour and 29 against, with the opposition Labour Party also backing the agreement, citing national interest and the importance of stronger trade relations with India.

95% of New Zealand Exports to India to Get Tariff Relief

A key feature of the agreement is New Zealand’s decision to eliminate or significantly reduce tariffs on approximately 95% of its exports to India.

More than half of the products covered by the agreement are expected to receive zero-duty access immediately once the FTA is implemented.

New Zealand Trade Minister Todd McClay said the agreement is expected to come into effect this year and would deliver immediate and substantial benefits to exporters.

India Gets Duty-Free Access to New Zealand Market

The agreement provides a major opening for Indian exporters. All Indian goods entering New Zealand will receive 100% duty-free access, according to the terms outlined in the deal.

This could provide Indian businesses with greater access to the New Zealand market across a wide range of products.

New Zealand Pledges $20 Billion Investment in India

Trade is not the only component of the agreement. New Zealand has also committed to investing US$20 billion in India over the next 15 years.

The investment commitment adds a long-term strategic dimension to the trade agreement, potentially deepening economic links between the two countries beyond merchandise trade.

Agreement Signed in April, Trade Already Near $4 Billion

India and New Zealand signed the FTA in April this year. Bilateral trade had reached approximately NZ$3.99 billion (US$2.29 billion) as of June 2026, with India ranking as New Zealand’s ninth-largest export market.

The agreement will formally come into full effect after the necessary legal and official procedures are completed in both countries.

What the FTA Means for India

The agreement gives Indian exporters duty-free access across the New Zealand market, while New Zealand exporters receive substantial tariff reductions in India.

With trade, investment and market access all forming part of the deal, the FTA marks a significant new phase in the economic relationship between India and New Zealand.