New Zealand and India will sign their free trade agreement in New Delhi on April 27 after both sides completed legal verification of the pact, with Trade and Investment Minister Todd McClay saying the ceremony will take place in front of a large group of Indian and New Zealand businesses.
For Wellington, this is being sold as a major economic breakthrough. McClay called it a “once-in-a-generation agreement” that gives New Zealand exporters “unprecedented access” to India’s 1.4 billion people and a market expected to become the world’s third-largest economy.
He also said that, at a time of global instability, a trade deal with India had “never been more important” for New Zealand’s prosperity.
The agreement was first launched during Prime Minister Christopher Luxon’s March 2025 visit to India, with both countries pushing through negotiations at speed. India’s Ministry of External Affairs said the deal was concluded on December 22, 2025, after just nine months of talks, describing it as a “historic, ambitious and mutually beneficial” agreement that would deepen trade, investment and broader strategic ties.
The numbers explain why New Zealand is keen to move quickly. According to the New Zealand government, the FTA will eliminate or reduce tariffs on 95 per cent of the country’s exports to India, one of the broadest outcomes secured in any Indian trade deal. Almost 57 per cent of New Zealand exports are set to become duty-free from day one, including lamb, wool, coal, leather, and most forestry and industrial goods.
That figure is expected to rise to 82 per cent once the agreement is fully implemented, with gains also flagged for seafood, infant formula and kiwifruit.
McClay has also pointed to a potentially lucrative Most Favoured Nation clause covering wine and services. He said the European Union had already secured better access for wine and services exports, and that those gains would automatically extend to New Zealand exporters if Wellington’s agreement enters into force first.
“This will be worth tens of millions of dollars in extra exports for the New Zealand economy,” he said.
The deal is politically significant, too. India and New Zealand have been trying for years to lift their economic relationship, and New Zealand’s own foreign ministry says two-way trade currently sits at NZ$3.68 billion annually.
In their December 2025 call, Prime Ministers Narendra Modi and Christopher Luxon said they were confident the agreement could help double bilateral trade over the next five years, while also encouraging NZ$20 billion in New Zealand investment into India over 15 years.
Even so, the signing will not mean instant implementation. McClay said the agreement will now move into New Zealand’s formal parliamentary treaty examination process, allowing the text and national interest analysis to be tabled in Parliament and examined by the Foreign Affairs, Defence and Trade Committee before enabling legislation is introduced.
That means the deal may be signed next week, but the real political and commercial test will come in how quickly both sides can turn it into force.
Support our Journalism
No-nonsense journalism. No paywalls. Whether you’re in Australia, the UK, Canada, the USA, or India, you can support The Australia Today by taking a paid subscription via Patreon or donating via PayPal — and help keep honest, fearless journalism alive.
