India and New Zealand are closing in on putting their Free Trade Agreement (FTA) into effect, with the pact expected to come into force within the next month once both sides complete the formal exchange of notes. New Zealand has already completed its part of the process, with the implementing legislation receiving Royal assent.
New Zealand Trade and Investment Minister Todd McClay said the agreement could serve as a "beacon" for global trade by showing the value of stable and predictable trade rules at a time of tariff uncertainty and shifting economic conditions, ANI reported.
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The FTA will provide Indian exporters with zero-tariff access to the New Zealand market from the first day of implementation, creating opportunities across pharmaceuticals, chemicals, machinery and services. New Zealand businesses, meanwhile, are expected to gain improved access to India's large consumer market, particularly in food, services, machinery and investment.
"On day one, every single thing India wants to sell to New Zealand will be at a zero-tariff rate," he stated.
The agreement also aims to boost two-way investment in sectors such as manufacturing, infrastructure, science and innovation. Bilateral trade, currently worth around 4 billion New Zealand dollars, is targeted to reach 7 billion New Zealand dollars by 2030.
The pact is expected to strengthen wider people-to-people links, including tourism, business travel and education. McClay said "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.
India and New Zealand signed the FTA in New Delhi on April 27, 2026, following nine months of negotiations after years of discussions.
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McClay said the agreement reflects growing confidence between the two countries and could provide businesses with greater certainty while supporting trade, investment and employment opportunities in both economies.
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