New Zealand Passes Law to Bring India-New Zealand FTA Into Force

The Parliament of New Zealand passed legislation on 16 September 2026. The law gives effect to the India-New Zealand Free Trade Agreement. India welcomed the step the next day. The agreement itself was signed in New Delhi on 27 April 2026. The passage of the law is a key step towards bringing the pact into force.

What India gains

The pact gives duty-free access for 100 per cent of Indian exports to New Zealand. This applies from the date the agreement enters into force. Sectors that stand to gain include textiles and apparel. Leather and footwear are covered too. Engineering goods, pharmaceuticals, agriculture and processed food products also benefit.

What New Zealand gains

New Zealand exporters get better and preferential entry into the Indian market. The goods named are wood and wool. Sheep meat and raw hides of leather are also listed.

Beyond goods

The agreement is not limited to trade in goods. It opens fresh ground in services and investment. It covers movement of professionals, students and youth. Indian professionals and students get improved pathways. The pact provides for facilitating 20 billion US dollars of investment into India. It also deepens cooperation in farm productivity, pharmaceuticals and medical devices, traditional medicine and AYUSH, technology and trade facilitation.

The diplomatic build-up

Prime Minister Narendra Modi travelled to New Zealand in July 2026. That was the first visit by an Indian Prime Minister to the country in four decades. The two Prime Ministers then agreed to deepen economic engagement. They stressed early implementation of the trade pact.

At a glance

Both countries are now completing their own domestic steps. The aim is an early entry into force. Ties between the two rest on strong people-to-people links and cooperation in trade, investment, agriculture, education, sports and technology.