New Zealand ratifies landmark free trade deal with India
What's the story
New Zealand's parliament has approved a landmark free trade agreement with India. The deal, which was passed by a vote of 93-29, will see tariffs on nearly 95% of New Zealand's exports to India eliminated or drastically reduced. More than half the products covered under this agreement will be duty-free from the day it comes into effect.
Minister's statement
Trade deal to come into effect this year
New Zealand's Trade Minister Todd McClay welcomed the approval of the trade deal, calling it a "high-quality agreement."
He said, "For exporters, the benefits are immediate and substantial," adding that they expect this agreement to come into force this year.
The deal was first signed by both countries in April.
Trade benefits
NZ's investment in India
Under the terms of this trade deal, all Indian goods will get duty-free access to New Zealand.
The agreement also includes a commitment from Wellington to invest NZ$20 billion (around ₹1 lakh crore) in India over 15 years.
This investment is expected to further strengthen economic ties between the two nations.
Economic impact
Boost to bilateral trade
The trade deal is expected to give a major boost to bilateral trade between New Zealand and India.
In the year ending June 2026, two-way trade totaled NZ$3.99 billion (around ₹19,500 crore), with India being New Zealand's ninth-largest goods and services export market.
The agreement will come into effect after both countries complete their respective ratification processes.