Labour has confirmed it will support the India free trade agreement, giving the government enough votes in Parliament to pass the deal despite strong opposition from NZ First.
The agreement, first announced in December and set to be signed in New Delhi, had been in doubt due to NZ First’s resistance, but Labour leader Chris Hipkins said his party would back it after reviewing the text and legal advice. However, Hipkins warned a clause encouraging up to $20 billion (USD) in New Zealand private sector investment into India over 15 years was “very unrealistic” and “almost impossible” to achieve. He cautioned that “India have reserved the right to claw back the concessions they’ve granted… in the event that New Zealand businesses don’t invest $20 billion US in India,” adding businesses should be aware of the risk.
NZ First leader Winston Peters launched a scathing attack on the agreement and Labour, calling it “madness” and a “disgraceful sellout” of the country’s future.
In a statement on X, Peters said the deal would force New Zealand to promote tens of billions of dollars of investment offshore, describing it as “an utter unmitigated disaster of an agreement for New Zealand’s future.” He also raised concerns about immigration settings tied to the deal, claiming it risked expanding visa access and student numbers, and arguing, “This is supposed to be a free trade deal, not a free migration deal.”
Despite those criticisms, Labour signalled it would not block the agreement, with Hipkins saying the party would allow it to proceed while flagging the investment provisions as a ‘potential risk area’.
The Labour Party and National Party have just sealed an FTA that means that our country MUST promote $33 billion in just 15 years into a foreign country and NOT into New Zealand.
This is madness.
Labour themselves have said this FTA is “high risk” because if we don’t meet…
— Winston Peters (@winstonpeters) April 22, 2026
