The New Zealand Parliament passed legislation on 16 September 2026 to implement a free trade agreement between New Zealand and India. The bill was approved by 93 votes to 29, and the agreement is expected to enter into force after ratification by both countries.
India-New Zealand Free Trade Agreement
The India-New Zealand Free Trade Agreement was signed in New Delhi on 27 April 2026. Negotiations began in March 2025 and concluded in December 2025. The agreement covers trade in goods and services, border procedures, and market access commitments.
Tariff and Market Access Provisions
Under the agreement, tariffs on about 95% of New Zealand exports to India will be eliminated or reduced. More than half of these exports will become duty-free from the date the agreement takes effect. Indian goods will receive 100% duty-free access to the New Zealand market once the agreement becomes operational.
Trade and Investment Context
Two-way trade between New Zealand and India stood at NZ3.99 billion in the year to June 2026. India was New Zealand’s ninth-largest goods and services export market in that period. New Zealand has also committed to invest about US20 billion in India over 15 years.
Important Facts for Exams
- Free trade agreements are treaties that reduce or remove tariffs and other trade barriers between partner countries.
- Tariffs are customs duties levied on imported goods at the border.
- Ratification is the formal approval process required before an international agreement enters into force.
- India has signed multiple trade agreements with countries in the Asia-Pacific region, including comprehensive economic and trade arrangements.
Bilateral Trade Targets
Prime Ministers Narendra Modi and Christopher Luxon have set a target to double bilateral trade by 2030. The agreement includes faster border clearance and preferential access for New Zealand exporters of food, fibre, technology, education, tourism, and professional services.
