New Delhi, September 16 (Daily Kiran) : New Zealand’s parliament has officially approved a free trade agreement (FTA) with India, passing the measure with a vote of 93 to 29. This significant decision was announced by Todd McClay, the Minister of Trade and Investment.
McClay highlighted the strong parliamentary support for the agreement and its potential economic benefits. He noted that the FTA will enhance access for New Zealand exporters to one of the world’s largest and fastest-growing economies.
Once implemented, 57% of New Zealand’s exports to India will be duty-free. Ultimately, the agreement aims to eliminate or significantly reduce tariffs on 95% of exports.
The kiwifruit industry alone is expected to save around NZD 125 million in duties over the next five years. McClay also mentioned that the agreement will facilitate quicker customs clearance and improve access to India’s expanding middle class, which is driving demand for food, technology, education, tourism, professional services, and other products.
Discussions about the New Zealand-India FTA began in March 2025, with hopes that it will be operational by the end of this year. McClay emphasized that the agreement will help New Zealand exporters strengthen their business relationships and support the goal set by Indian Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon to double trade between the two nations by 2030.
The FTA will take effect once both countries complete their respective approval processes. A report from Westpac Institutional Bank in August noted that India’s growing economic strength makes it a strategic partner for New Zealand, with substantial benefits anticipated from the recent FTA. The report suggests that the agreement could boost New Zealand’s GDP by approximately 0.1% over the next decade, emphasizing India’s status as one of the fastest-growing major economies with a market of 1.4 billion people.
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