FTA Opens Wider India-New Zealand Market for Exporters and Businesses

India and New Zealand are moving closer to a new phase of trade cooperation after New Zealand’s Parliament passed legislation to implement the bilateral Free Trade Agreement (FTA), creating fresh opportunities for exporters and businesses in both markets.

The legislation was approved by 93 votes to 29, clearing a key step towards bringing the agreement into force. The pact is expected to significantly reduce trade barriers and give businesses easier access to each other’s markets.

Under the agreement, 57 per cent of New Zealand’s exports to India will become duty-free from the beginning of implementation, while tariffs on around 95 per cent of New Zealand exports will eventually be eliminated or substantially reduced. This could lower the cost of entering the Indian market for New Zealand exporters and create greater opportunities across several sectors.

For Indian businesses, the agreement provides an important opening in the New Zealand market. The FTA provides for duty-free access for 100 per cent of India’s exports to New Zealand, creating opportunities for sectors such as textiles and apparel, leather and footwear, gems and jewellery, engineering goods and processed food.

The agreement could be particularly relevant for small and medium-sized exporters. Lower tariffs and improved market access can help businesses compete more effectively in international markets, while creating scope for new trade partnerships and supply-chain relationships.

New Zealand’s agriculture and food businesses are also expected to benefit from improved access to India. The country’s kiwifruit industry alone estimates tariff savings of about NZ$125 million over five years under the agreement.

Beyond merchandise trade, the FTA is expected to strengthen cooperation in services and other areas of the economy. This could create additional opportunities for businesses involved in professional services, technology, education, tourism and other growing sectors.

The agreement also supports the broader objective set by Indian Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon to double bilateral trade by 2030. The pact is expected to provide a framework for businesses to expand exports, investment and commercial partnerships between the two countries.

The latest parliamentary approval is an important milestone, although the agreement still requires the completion of the respective implementation procedures before it formally comes into force. The pact is expected to be operational later this year.

With tariff reductions covering a large share of trade, the India-New Zealand FTA could become an important channel for expanding bilateral commerce. For businesses, the agreement offers a clearer route to explore new customers, increase exports and build long-term commercial links between the two economies.