NZ–India Free Trade Bill Clears First Reading

The Government believes the agreement will create new opportunities for exporters across a range of goods and services while supporting its goal of doubling the value of New Zealand's exports by 2034.

Legislation to implement the New Zealand–India Free Trade Agreement (FTA) has passed its first reading in Parliament, marking a major step toward bringing the landmark trade deal into force later this year. Trade and Investment Minister Todd McClay said the agreement will give New Zealand businesses greater access to one of the world's largest and fastest-growing economies. India, with a population of 1.4 billion people and a gross domestic product worth around NZ$7 trillion, has recorded average economic growth of 8.25 per cent since 2021, creating significant opportunities for exporters. McClay said many New Zealand products have struggled to enter the Indian market because of high import tariffs and restrictive quotas. The new agreement is expected to remove many of those barriers and improve the competitiveness of Kiwi businesses.

Tariff cuts expected to boost exports

Under the agreement, 95 per cent of New Zealand's exports to India will eventually benefit from reduced or eliminated tariffs once the deal is fully implemented. From the first day the agreement takes effect, 57 per cent of New Zealand exports will enter the Indian market tariff-free.

The Government believes the agreement will create new opportunities for exporters across a range of goods and services while supporting its goal of doubling the value of New Zealand's exports by 2034.

The deal also includes a Most-Favoured-Nation (MFN) commitment for wine exports and priority service sectors. This provision ensures New Zealand will automatically receive any improved market access that India grants to future free trade agreement partners, helping exporters remain competitive as India's trade network expands.

Public consultation to follow before ratification

The legislation will now be referred to Parliament's Foreign Affairs, Defence and Trade Committee, where members of the public and interested organisations will have the opportunity to make submissions before the bill returns to Parliament. The Government is working towards ratifying the agreement later this year once the select committee has completed its review and Parliament passes the implementing legislation.

McClay said the agreement represents an important step in strengthening New Zealand's trade relationship with India while creating new opportunities for businesses to expand into one of the world's most dynamic consumer markets.