India-New Zealand FTA set to enter into force within a month, says McClay

The India-New Zealand Free Trade Agreement is expected to enter into force within the next month, New Zealand's Trade and Investment Minister Todd McClay has said, as the two countries work on exchanging official notes to begin implementation.

McClay said the agreement had cleared the New Zealand Parliament with a significant majority, and that the two sides were now completing the formal steps needed to bring it into effect. "You can expect that within the next month," he said.

The implementing legislation was approved by the New Zealand Parliament on September 15, with the official record showing 93 votes in favour and 29 against. Royal assent followed on September 17.

According to McClay, the pact will give Indian exporters duty-free access to the New Zealand market from the first day of implementation, with New Zealand committing to bring tariffs on Indian goods to zero, subject to the agreement's provisions. He identified chemicals, pharmaceuticals and machinery as sectors likely to see increased trade, and pointed to services, particularly information and communications technology, as another area of potential growth.

New Zealand, for its part, expects improved access to the Indian market for its food, machinery, services and investment. McClay described the agreement as a "win-win" for both economies.

The FTA was signed in New Delhi on April 27, 2026, after negotiations concluded in nine months. India has secured duty-free access for 100 per cent of its exports to New Zealand under the agreement.

On bilateral trade, McClay said Prime Minister Christopher Luxon and Prime Minister Narendra Modi had set a target of doubling two-way trade by 2030. Two-way trade currently stands at around NZ$4 billion, and McClay said he believed the two countries could surpass the goal. New Zealand's Ministry of Foreign Affairs and Trade has put the 2030 ambition at NZ$7 billion.

McClay also said the agreement could boost the movement of people between the two countries, including students, professionals, tourists and business travellers, and that direct flights between India and New Zealand were expected within about a year.

Asked what had made the long-pending deal possible, McClay attributed it to growing political and personal trust, citing the relationship between Modi and Luxon as well as his own ties with Commerce and Industry Minister Piyush Goyal. He said the two sides had decided to pursue the highest-quality agreement as quickly as possible, and that concluding it in nine months reflected the trust that had developed.

Against the backdrop of rising tariffs and uncertainty in global trade, McClay said the agreement demonstrated the value of predictable trade rules, creating certainty for businesses and signalling that both countries respect those rules. He added that the pact would create jobs and opportunities in both countries and could serve as an example for other economies.