The India-New Zealand Free Trade Agreement (FTA) is expected to come into force within the next month, New Zealand Minister for Trade and Investment Todd McClay said on Friday, 18 September 2026, following the pact's passage through New Zealand's Parliament. The agreement cleared the legislature with strong bipartisan backing, signalling a landmark shift in bilateral economic ties between the two nations.

Parliamentary Passage and Next Steps

The FTA secured decisive support in New Zealand's Parliament, with 93 lawmakers voting in favour and 26 against. McClay outlined the procedural path ahead: “The next stage is that we will sign it into law and exchange diplomatic notes with India when they are able to do the same. Then the clock starts ticking for the agreement to enter into force.”

He added: “I think we can expect that within the next month.” The exchange of diplomatic notes with India marks the final administrative hurdle before implementation begins.

Trade Targets and Economic Opportunities

McClay described the agreement as one of the most comprehensive trade deals negotiated by either country. New Zealand Prime Minister Christopher Luxon and Prime Minister Narendra Modi have both committed to doubling bilateral trade by 2030, a goal McClay said was now “more than possible.”

On day one of the agreement’s implementation, every tariff on Indian exports to New Zealand drops to zero — a provision McClay called an outright win for Indian exporters. Indian businesses are already mobilising, with commercial delegations from both countries visiting each other to establish partnerships ahead of enforcement.

Key Sectors Set to Benefit

The agreement covers a broad range of sectors. For New Zealand, high-value food exports — particularly horticulture, meat, and related products — stand to gain from India’s expanding consumer market. For India, the FTA opens greater access for manufactured goods, pharmaceuticals, and machinery into New Zealand.

Services are also a focal point, with tourism and IT services identified as areas capable of generating high-paying employment in both countries. McClay further pointed to agriculture technology and renewable energy as domains where deeper bilateral cooperation could yield long-term dividends for Indian farmers and energy planners alike.

Certainty Amid Global Trade Uncertainty

McClay emphasised that the FTA carries particular significance given ongoing volatility in global tariff regimes. “It gives our businesses and our exporters certainty,” he said, adding that the agreement would provide greater predictability for Indian companies investing in New Zealand and for New Zealand firms seeking footholds in the Indian market.

This comes amid a broader environment of trade fragmentation, with several economies reassessing their tariff positions. The India-New Zealand deal is being positioned as a rules-based anchor for both countries’ commercial relationships. Notably, the two governments have also signed cooperation agreements in security and other areas, suggesting the FTA is part of a wider strategic deepening.

What Comes Next

McClay indicated he plans to visit India before the end of the year, following New Zealand’s upcoming general election, which he identified as his immediate domestic priority. “The trade agreement is only a start of the effort, focus and investment that the New Zealand Government wants to make in our relationship with India,” he said. Once both sides exchange diplomatic notes, the formal countdown to the FTA entering into force will begin.