World

NZ parliament passes India trade deal to cut tariffs

By AAP Newswire

Sep 16, 2026

India's free trade agreement with New Zealand was signed in April by Piyush Goyal and Todd McClay. -AP

New Zealand's parliament has passed legislation to implement a free trade ‌agreement with India, under which tariffs on about 95 per cent of ‌Kiwi exports to India would be eliminated or ‌significantly reduced.

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The legislation passed by a vote of 93-29, with support from the opposition Labour Party.

More than half of all products covered would become duty-free ‌from the day ‌it ⁠takes effect.

"For exporters, the benefits are immediate and substantial," New Zealand Trade Minister Todd McClay said in a statement.

"We expect this high-quality agreement to enter into force this year, delivering on our promise to ⁠complete a free ‌trade agreement with India this term."

Under the deal, all Indian goods will ‌receive duty-free access to New Zealand. Wellington has also agreed to invest $US20 billion in India over the next 15 years.

Both nations originally signed the trade agreement in April.

Two-way trade totalled $NZ3.99 billion ($A3.22 ‌billion) in the year to June 2026, with India ranking as New Zealand's ninth-largest goods and services export market.

The trade deal will become effective after both nations complete their respective ratification procedures.