The India–New Zealand Free Trade Agreement (FTA) has moved one step closer to becoming operational, following approval by the New Zealand Parliament.
In our earlier article, we reported on the signing of the India–New Zealand FTA in April 2026. Since then, an important milestone has been reached: New Zealand’s Parliament has passed the legislation required to give effect to the agreement. The legislation was approved on 16 September 2026 by 93 votes to 29.
India and New Zealand signed the FTA in New Delhi on 27 April 2026. The parliamentary approval in New Zealand is an important step towards bringing the agreement into force.
New Zealand’s Trade and Investment Minister Todd McClay welcomed the parliamentary approval, saying:
“The India FTA opens the door for Kiwi exporters to one of the world’s largest and fastest-growing economies.”
The Indian Government also welcomed the passage of the legislation, describing it as an important step towards bringing the agreement into force and strengthening the economic partnership between the two countries.
The agreement is particularly significant for New Zealand exporters seeking greater access to the Indian market.
According to the New Zealand Government, 57% of New Zealand’s exports to India will become duty-free from the first day of the agreement, while tariffs will eventually be eliminated or significantly reduced on 95% of New Zealand’s exports once the agreement is fully implemented.
The agreement covers areas including food and agriculture, forestry, technology, services, tourism, education and professional services.
For New Zealand’s kiwifruit industry, the Government estimates that the agreement could result in approximately NZ$125 million in tariff savings over five years.
Interestingly, increased trade activity has been reported even before the FTA has entered into force.
New Zealand’s Trade Minister Todd McClay reported that apple export volumes to India had increased from approximately 27,000 tonnes in the 2024 season to 45,000 tonnes in 2026, an increase of 63%. The 2026 season was still underway when the figure was reported.
Source: Government of New Zealand – Beehive, 6 July 2026.
The New Zealand Government has described this as an early indication of growing commercial interest between the two countries, while noting that the FTA itself had not yet entered into force.
The FTA is broader than the trade of physical products.
The Government of India says the agreement creates opportunities in services, investment and professional, student and youth mobility, while also strengthening cooperation in areas including technology, agricultural productivity, pharmaceuticals, medical devices and trade facilitation.
The agreement also provides for facilitating US$20 billion of investment into India over 15 years.
From New Zealand’s perspective, the Government has highlighted growing opportunities in high-quality food and fibre, technology, education, tourism and professional services.
The parliamentary approval does not mean that the FTA is already operational.
India and New Zealand still need to complete their respective domestic and implementation procedures before the agreement enters into force.
India’s Commerce Secretary Rajesh Agrawal said the agreement is expected to become operational in the latter half of October 2026, with the exact date to be announced after both sides complete the necessary processes.
So, at present, since the New Zealand Parliament has approved implementing legislation, once the remaining domestic procedures are done, the FTA enters into force.
The India–New Zealand FTA is an important development in New Zealand’s relationship with India.
It brings together areas ranging from agriculture and forestry to technology, services, investment, tourism and education, creating a broader framework for economic cooperation between the two countries.
For those following Study in New Zealand, developments such as this provide useful context about New Zealand’s wider international relationships and economic environment.
The FTA itself is not an education policy. However, education and professional services are among the areas covered by the broader agreement, making it one of several developments worth following when looking at New Zealand’s relationship with India.
Our earlier article looked at the signing of the India–New Zealand FTA. This update follows the agreement as it moves towards implementation.
At Olive Consulting, our focus on New Zealand extends beyond courses and institutions. As specialists in New Zealand education, we also follow important developments affecting New Zealand and its relationship with India.
Keeping up with these developments helps us maintain a broader understanding of the country and provide students and families with current, relevant information when considering Study in New Zealand.
Related article: India–New Zealand Free Trade Agreement 2026: A Key Update in Bilateral Relations