India–New Zealand FTA Likely Within a Month, Zero Tariffs for Indian Exports: McClay

The India–New Zealand Free Trade Agreement is likely to take effect within a month, giving Indian exporters duty-free access to the New Zealand market from the first day of implementation, New Zealand Trade and Investment Minister Todd McClay said.

With New Zealand’s domestic legislative process complete, the two countries are working on exchanging official notes to bring the agreement into force.

“We’re very close now,” McClay told ANI in an interview. “You can expect that within the next month.”

Signed in New Delhi on April 27, 2026, the FTA concluded nine months of negotiations. New Zealand’s Parliament approved the implementing legislation on September 15, and Royal assent followed on September 17.

The official parliamentary record puts the vote at 93 in favour and 29 against. McClay cited 93–26 in the interview.

Zero Tariffs, Wider Opportunities

Under the agreement, India has secured duty-free access for 100 per cent of its goods exports to New Zealand, subject to the pact’s provisions.

“On day one, every single thing India wants to sell to New Zealand will be at a zero-tariff rate,” McClay said.

He identified chemicals, pharmaceuticals and machinery as sectors likely to benefit, while pointing to information and communications technology as a promising area for services trade.

New Zealand, in turn, expects the agreement to deepen its access to India’s market across food, machinery, services and investment.

McClay said the pact would also give companies greater confidence to invest in infrastructure, manufacturing, science and innovation. He cited a New Zealand company planning to establish a manufacturing facility in India as an example of the opportunities emerging.

The 2030 Trade Ambition

McClay put current bilateral trade at around NZ$4 billion and said Prime Ministers Narendra Modi and Christopher Luxon had set an ambition to double trade by 2030. He expressed confidence that the agreement could help the countries surpass their target.

New Zealand’s Ministry of Foreign Affairs and Trade separately specifies a 2030 aspiration of NZ$7 billion in two-way trade.

The minister said the benefits would extend to students, professionals, tourists and business travellers.

Indian students would continue to be welcomed in New Zealand, he said, highlighting existing arrangements that allow master’s and PhD students to work for longer after completing their studies.

“I think we can attract students who’ll come, get a good education, and they’ll take those skills and some of the experience they get in New Zealand back to India as that economy continues to grow,” McClay said.

He also predicted that direct flights between the two countries could begin within about a year, supporting tourism, business travel and family visits.

Nine Months, Built on Trust

Asked how the countries concluded negotiations in nine months after years of discussions, McClay pointed to stronger political and personal relationships.

“Fundamentally, it comes down to the friendship that has been formed,” he said, referring to ties between Modi and Luxon, as well as his own working relationship with Commerce and Industry Minister Piyush Goyal.

“We decided we wanted to do the highest-quality agreement as quickly as we could,” McClay said. “To be able to achieve that in nine months shows just how much trust has developed between our two countries.”

That trust, he argued, carries particular weight as businesses contend with shifting tariffs and uncertainty over global trade rules.

“But between India and New Zealand, we’ve now made a commitment, and the two governments have said, ‘We trust each other. We will honour these commitments’,” he said.

Calling the pact one of the highest-quality agreements negotiated by the two countries, McClay said its wider significance lay in providing predictable rules for businesses.

“I think it can be a beacon for others to also do what we have done, where, when you respect the rules, businesses can grow and flourish,” he said.

“This free trade agreement will create jobs in India and New Zealand.”

With inputs from ANI