'People told me it wasn't possible': New Zealand PM hails India trade deal after Parliament vote

New Zealand Prime Minister Christopher Luxon on Wednesday celebrated the passage of his country's free trade agreement with India, saying the deal would create more jobs, lift incomes, and open access to 1.4 billion Indian consumers.

"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," Luxon said in a post on X.

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The New Zealand Parliament passed the legislation on Wednesday, clearing a key step towards bringing the India-New Zealand FTA into force. The agreement was signed on April 27.

What The Deal Means For New Zealand

Luxon said the agreement would give New Zealand businesses greater access to the Indian market.

"National said we said we'd secure a Free Trade Agreement with India in our first term, and we've delivered," he said. "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."

New Zealand's government said the agreement will eventually eliminate or significantly reduce tariffs on 95% of its exports to India. From the first day of implementation, 57% of New Zealand's exports to India will become duty-free.

"It’s one of the ways we will grow the economy to help you get ahead – fixing the basics and building the future," the New Zealand PM said.

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When Will The FTA Come Into Force?

The agreement is expected to become operational in the second half of October.

Commerce Secretary Rajesh Agrawal said on Tuesday that the exact date would be announced soon, as both sides still need to complete the operationalisation procedures.

"We are expecting that the agreement will get operationalised in the latter half of October 2026. The exact date for the same will be announced soon...Because both sides have to completely take stock of the operationalisation processes and procedures," he said.

An official said the agreement is expected to come into force effective October 19.

The FTA provides duty-free access for 100% of India's exports to New Zealand once it comes into force.

New Zealand currently imposes peak tariffs of up to 10% on some key Indian goods, including ceramics, carpets, automobiles, and auto components.

New Zealand has also committed to invest $20 billion in India over 15 years.