What the New Zealand–India Free Trade Agreement means for Kiwi businesses
New Zealand businesses trading with India are a step closer to benefiting from lower tariffs and improved market access following the passage of legislation implementing the New Zealand–India Free Trade Agreement (FTA).
The legislation passed Parliament on 16 September 2026 by 93 votes to 29. The FTA will enter into force once New Zealand and India have both completed their respective ratification procedures.
What will change for New Zealand exporters?
From the first day the FTA takes effect, 57% of New Zealand exports to India will become duty-free. Once the agreement is fully implemented, tariffs will be eliminated or significantly reduced on 95% of New Zealand exports.
The Government says the kiwifruit industry alone expects to save around $125 million in tariffs over five years.
The agreement also provides for faster border clearance and improved access across areas including food and fibre, technology, education, tourism and professional services. It includes most favoured nation commitments covering wine and key services sectors.
Opportunities extend beyond exporting goods
For businesses, the significance of the FTA is not limited to selling physical products into India.
Greater trade between the two countries could create opportunities for New Zealand businesses providing services, entering new commercial relationships, investing across borders or establishing a presence in India.
That is also where careful planning becomes important. International expansion can bring tax considerations in both jurisdictions, including how a business is structured, where income is taxed, cross-border transactions and the tax treatment of employees or operations working across different countries.
The right approach will depend on the individual business, its activities and how it plans to enter or operate within the Indian market.
Planning for cross-border growth
The New Zealand and Indian governments have set a goal of doubling two-way trade by 2030, with the FTA intended to support businesses in developing new relationships and increasing trade between the two countries.
For New Zealand businesses considering opportunities arising from the agreement, it can be worthwhile looking at the commercial and tax implications early rather than after an overseas arrangement has already been established.
Our international and cross-border tax capability can help businesses understand the New Zealand tax implications of operating internationally and work through the accounting and tax considerations that can accompany expansion into overseas markets.
The FTA will enter into force once both countries have completed their respective ratification procedures.
Read the full New Zealand Government announcement »
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Source: New Zealand Government (2026) India FTA passes with significant majority, Beehive.govt.nz, 16 September