Surprised it isn't...: Shashi Tharoor hails Labour Party's support to India-NZ FTA

Key Highlights

• The development is particularly remarkable due to the internal friction within New Zealand’s ruling coalition.
• Prime Minister Luxon’s partner, the New Zealand First party, remains staunchly opposed to the deal and has invoked a rare “agree to disagree" clause. On the other hand, Labour says it’s a continuation of their long-standing efforts to deepen ties with India and that it would be irresponsible to block a deal with the world's fastest-growing major economy. Though they remain concerned about the "dairy deficit" (the exclusion of core dairy products from the FTA), Labour argued that some progress is better than none and that the deal provides a vital foothold for other sectors like education, tech, and wine. The ruling National Party offered certain "political concessions" to secure Labour's votes.
• A specific one-year review mechanism is built into the agreement.
• This allows for a formal pursuit of "further improvements", specifically regarding dairy and environmental standards.
• The migration provisions, which are important for India, will also get special scrutiny. The New Zealand government, on its official website, said FTA with India will deliver preferential access for New Zealand exporters to the large and fast-growing Indian market for 95% of our current exports over time, with more than 50% benefitting from full tariff elimination immediately on the day one, and rising to more than 80% over time. With Labour on board, the enabling legislation is expected to move through the parliamentary committee process and pass with a super-majority comprising National, ACT and Labour. Although New Zealand is a relatively small economy, Tharoor described the agreement as a symbolic “game-changer” for India, signalling a diversification of its trade partnerships and an expansion of its strategic economic options. Ending his post on a lighter note, Tharoor added that with the trade breakthrough on track, attention could now shift to the opening match of the India–New Zealand T20 international series.- EndsPublished By: Priya PareekPublished On: Jan 21, 2026Must Watch Watch Live TV.