Zillar Barta Desk : New Zealand’s Trade and Investment Minister Todd McClay has said the India-New Zealand Free Trade Agreement (FTA) will create significant opportunities to expand bilateral trade, investment and exports. His comments came after New Zealand’s Parliament passed legislation on September 16 to implement the agreement.
The FTA, signed by India and New Zealand on April 27, 2026, is now moving closer to implementation. McClay said the agreement is expected to come into force within a month, once both countries complete the remaining formal procedures and exchange diplomatic notes.
According to New Zealand’s government, 57% of New Zealand’s exports to India will become duty-free from the first day of the agreement, while tariffs on around 95% of New Zealand’s exports will eventually be eliminated or significantly reduced. The agreement is also aimed at helping the two countries work towards their leaders’ goal of doubling bilateral trade by 2030.
For India, the pact provides duty-free access for 100% of Indian exports to New Zealand once it enters into force. Key sectors expected to benefit include textiles and apparel, leather and footwear, engineering goods, pharmaceuticals, agriculture and processed food products.
The agreement also includes provisions aimed at facilitating USD 20 billion of investment into India, along with expanded opportunities in services, professional mobility, education and technology. India has also secured enhanced access for professionals and students through new mobility pathways.
Bilateral goods and services trade was around USD 2.4 billion in 2024, while merchandise trade stood at about USD 1.3 billion in 2024-25. Both governments expect the FTA to help increase trade flows and create new opportunities for businesses, exporters and investors.
McClay described the agreement as a major opportunity for New Zealand exporters, while Indian officials have highlighted its potential to strengthen manufacturing, MSMEs, employment-intensive industries and India's integration with global markets.
