India-New Zealand FTA likely by year-end

Officials said India and New Zealand expect their free trade agreement to enter into force by the end of 2026 after the pact passed its first parliamentary reading in New Zealand by 93–26 votes. Reaction pending, officials said the agreement will remove tariffs on many Indian exports from day one and make up to 95% of New Zealand shipments tariff-free over seven to eight years.

Parliamentary vote 93–26

Officials said the bill is now in the formal legislative process in New Zealand following the first reading, with both governments pressing for rapid ratification. The pact creates a priority desk to speed New Zealand investment approvals in India and includes provisions expected to cut duties on goods, services and agricultural machinery, officials said.

Officials said the agreement also targets improved travel and logistics: Air India and Air New Zealand are working to secure permissions for direct flights within one to two years, and officials pointed to the 350,000-strong Indian diaspora in New Zealand as a near-term beneficiary. They added future cooperation will span critical minerals, security, advanced manufacturing and space technology.

Officials warned that global fuel and fertilizer price shocks are a risk to trade costs but said the FTA aims to strengthen supply-chain resilience. Officials reiterated the target that the agreement be enforced by December 31, 2026, with markets to monitor legislative timetables and aviation permissions over the next 12–24 months.