New Zealand’s Parliament has passed the Free Trade Agreement (FTA) with India, Prime Minister Christopher Luxon said on Wednesday. He called it a “landmark” deal and said it would create more jobs and higher incomes for New Zealanders. The legislation passed its final vote with 93 lawmakers voting in favour and 29 against.

“People told me a Free Trade Agreement with India wasn’t possible. Well, today that deal passed its final vote in Parliament. It’s happening. This landmark deal means more jobs, higher incomes for Kiwis. It means more New Zealand products being sold in India by opening the door to 1.4 billion Indian consumers,” he wrote in a post on X.

“It’s one of the ways we will grow the economy to help you get ahead – fixing the basics and building the future.”

The bill received support from New Zealand’s ruling National Party and the main opposition Labour Party. The parliamentary approval takes the bilateral trade pact closer to implementation. India and New Zealand signed the agreement on April 27.

“The India FTA opens the door for Kiwi exporters to one of the world’s largest and fastest-growing economies,” Trade Minister Todd McClay said in Wellington. “Parliament today overwhelmingly backed the long-term benefits the agreement will deliver for all New Zealanders," according to Bloomberg.

India is now preparing to implement the agreement at the earliest. Commerce Secretary Rajesh Agrawal said on Tuesday that the pact could potentially become operational in October.

Under the agreement, New Zealand will provide duty-free access to Indian exports across all tariff lines, covering 100 per cent of them. India is expected to gain greater access for labour-intensive sectors, including textiles and apparel, leather and footwear, gems and jewellery, engineering goods and processed foods. The agreement aims to support employment and improve the competitiveness of these sectors.

New Zealand has committed to investing USD 20 billion in India over the next 15 years. The investment is intended to deepen economic ties and strengthen long-term cooperation between the two countries.

For New Zealand goods entering India, the agreement provides market access across 70.03 per cent of tariff lines, covering around 95 per cent of bilateral trade. India has kept 29.97 per cent of tariff lines outside the pact. These include sensitive sectors such as dairy, several agricultural commodities, sugar, certain metals and other products.

India will immediately eliminate duties on 30 per cent of tariff lines. These include wood, wool, sheep meat and raw hides. Duties on another 35.60 per cent of tariffs will be removed over three, five, seven or 10 years.

The pact also includes tariff reductions for selected products such as wine, pharmaceutical drugs, polymers and certain aluminium, iron and steel items. Limited tariff-rate quotas will apply to products including Mānuka honey, apples, kiwifruit and albumins.

India and New Zealand have also agreed to expand cooperation in agriculture. The focus will include kiwifruit, apples and honey, with collaboration covering planting material, research, technical assistance, orchard management, post-harvest practices, supply-chain development and food safety.