New Zealand’s Parliament has approved the Free Trade Agreement (FTA) with India, marking a significant step towards its implementation and deeper economic cooperation between the two countries. The agreement, signed in April, had yet to become operational. Its parliamentary approval now clears an important stage, with India also seeking to bring the pact into force as quickly as possible.
The agreement received 93 votes in favour and 29 against. New Zealand’s ruling National Party and opposition Labour Party both supported the deal. Prime Minister Christopher Luxon described the parliamentary approval as a historic development, saying the agreement would create greater opportunities for employment and income in New Zealand while opening wider access to Indian consumers.
India’s Commerce Secretary Rajesh Agrawal had said the government wanted the agreement implemented at the earliest, with October being considered as a possible timeframe.
Under an FTA, participating countries generally receive reduced or zero tariffs on a wide range of goods. For India and New Zealand, the agreement is expected to support sectors including textiles, leather products, footwear, gems and jewellery, and processed food.
The pact could also strengthen investment cooperation. New Zealand has reportedly committed to investing $20 billion in India over the next 15 years. Both countries have also agreed to expand cooperation in agriculture.
For India, lower tariffs could create greater opportunities for exports to the New Zealand market. Increased investment could additionally support technology transfer, industrial expansion and employment generation. The agreement is therefore expected to strengthen trade and investment links while creating broader opportunities for businesses in both countries.
