India FTA passes with significant majority
Trade and Investment Minister Todd McClay is welcoming the passing of the India Free Trade Agreement legislation today, and says the 93-29 vote is a clear demonstration of Parliament’s strong support for this FTA and its significant benefits for the economy.
“The India FTA opens the door for Kiwi exporters to one of the world’s largest and fastest-growing economies. Parliament today overwhelmingly backed the long term benefits the agreement will deliver for all New Zealanders,” says Mr McClay.
“For exporters, the benefits are immediate and substantial. From day one, 57 per cent of New Zealand’s exports to India will become duty-free. Once fully implemented, tariffs are eliminated or significantly reduced on 95 per cent of our exports. That means real savings and real opportunities. The kiwifruit industry alone expects to save around $125 million in tariffs over five years.
“Added to this are faster border clearance and preferential access to a fast-growing middle class that is demanding high-quality food, fibre, technology, education, tourism and professional services. The FTA is also future-proofed, through most favoured nation commitments for wine and key services sectors.
“Negotiations were announced in March 2025 and we expect this high quality agreement to enter into force this year, delivering on our promise to complete an FTA with India this term,” Mr McClay says.
“Exporters will be able to use this agreement to build new relationships, sell more of our world-class products, and contribute to the goal agreed by Prime Ministers Modi and Luxon of doubling two-way trade by 2030.”
“We are already seeing strong momentum as exporters, customers and investors respond to the increased engagement between our countries. This agreement turns India from a market of future promise into a practical opportunity for more New Zealand businesses.”
The FTA will enter into force after both parties have completed their respective ratification procedures.
Notes to editors:
Two-way trade with India totalled NZ$3.99 billion in the year to June 2026, with India our 9th-largest goods and services export market.
Key FTA outcomes for New Zealand include:
- Tariff elimination or reduction on 95 per cent of our exports once fully implemented.
- Duty-free access on 57 per cent of New Zealand’s exports from day one, increasing to 82 per cent when fully implemented, with the remaining 13 per cent being subject to sharp tariff cuts.
- Immediate tariff elimination on sheep meat, wool, coal and over 95 per cent of forestry and wood exports.
- Duty-free access on most seafood exports, including mussels and salmon, over seven years.
- Duty-free access on most iron, steel and scrap aluminium, over 10 years or less.
- Duty-free access for most industrial products, over five to 10 years.
- 50 per cent tariff cut for large quota of apples – nearly double recent average exports.
- Duty-free access for kiwifruit within a quota almost four times our recent average exports, and tariff halved for exports outside of quota.
- Duty-free access for cherries, avocados, persimmons and blueberries, over 10 years.
- Tariffs on wine reduced from 150 per cent to either 25 or 50 per cent (depending on the value of the wine) over 10 years plus a Most Favoured Nation (MFN) commitment.
- Tariffs on mānuka honey cut from 66 per cent to 16.5 per cent over five years.
- MFN status and liberalisation across key services exports.
- Duty-free access for bulk infant formula and other high-value dairy preparations over seven years.
- 50 percent tariff cut for high value milk albumins within a NZ-specific quota equal to current export volumes.
- An arrangement for duty-free access for dairy and other food ingredients for re-export.
