India has welcomed the passage of legislation by the Parliament of New Zealand on 16 September to give effect to the India–New Zealand Free Trade Agreement (FTA), which was signed in New Delhi on 27 April.

The passage of the legislation is seen as an important step towards bringing the Agreement into force. It reflects the shared commitment of both nations to deepen and broaden their economic partnership.

According to the Ministry of Commerce & Industry, Prime Minister Narendra Modi’s visit to New Zealand in July, the first by an Indian Prime Minister in four decades, provided fresh momentum to the bilateral relationship. During the visit, both Prime Ministers reaffirmed their commitment to deepen economic engagement and emphasised the importance of early implementation of the FTA.

India and New Zealand share longstanding and close relations, anchored in strong people-to-people ties and expanding cooperation across trade, investment, agriculture, education, sports, technology and other areas. The FTA represents a significant step in further strengthening these ties and creating new opportunities for businesses and communities in both countries.

The Agreement provides duty-free access for 100 per cent of Indian exports to New Zealand from the date of entry into force. This opens new opportunities for Indian exports including textiles and apparel, leather and footwear, engineering goods, pharmaceuticals, agriculture and processed food products.

At the same time, it provides enhanced and preferential access to the Indian market for New Zealand exports, including wood, wool, sheep meat and raw leather hides.

The Agreement also creates new opportunities in services, investment and professional, student and youth mobility. It includes enhanced pathways for Indian professionals and students, thereby strengthening educational and workforce exchanges.

It further provides for facilitating $20 billion (₹1,66,000 crores) of investment into India. This strengthens bilateral cooperation in areas including agricultural productivity, pharmaceuticals and medical devices, traditional medicine and AYUSH, technology and trade facilitation.

India and New Zealand are now working closely to complete their respective domestic processes in order to facilitate the early entry into force of the Agreement.

This development marks another milestone in India’s expanding trade diplomacy, following recent FTAs with partners such as Australia, the United Kingdom and the European Union.

The India–New Zealand FTA is expected to significantly boost bilateral trade volumes, enhance competitiveness in labour-intensive sectors, and create new opportunities for both economies.

ANI