NZ-India FTA Opens Door to 1.4 Billion Consumers

New Zealand Prime Minister Christopher Luxon has hailed the country's free trade agreement with India as a landmark deal that will open access to 1.4 billion Indian consumers and boost jobs and incomes in New Zealand.

The agreement, which passed its final vote in Parliament on Wednesday, means more New Zealand products will be sold in India, growing the country's economy and creating new job opportunities.

Luxon said the deal fulfilled a commitment made by his National Party to secure a free trade agreement with India during their first term in government. 'People told me a Free Trade Agreement with India wasn't possible,' he tweeted on X. 'Well, today that deal passed its final vote in Parliament. It's happening.'

The trade agreement will provide New Zealand exporters with greater access to India, one of the world's largest and fastest-growing economies. Under the pact, 57% of New Zealand exports to India will become duty-free when the agreement takes effect. Once fully implemented, tariffs will be removed or significantly reduced on 95% of exports.

The kiwifruit industry alone is expected to save about NZ$125 million in tariffs over five years, according to Trade and Investment Minister Todd McClay. The agreement aims to support a goal set by Luxon and Indian Prime Minister Narendra Modi to double two-way trade between the two countries by 2030.