India, New Zealand to ink ‘once in a generation’ free trade agreement today; enforcement later this year

E-PaperSubscribeSubscribeEnjoy unlimited accessSubscribe Now! Get features like The India-New Zealand free trade agreement (FTA) is likely to come into force later this year after both countries sign the pact today, as the treaty must undergo parliamentary scrutiny in New Zealand before it is operationalised, people familiar with the matter said. India and New Zealand concluded FTA negotiations on December 22, 2025, in nine months. (AP)In New Zealand, the signed FTA will be reviewed by the Parliament’s foreign affairs, defence and trade committee (FADTC). Following a national interest analysis, which includes a public consultation, the committee will submit its report to Parliament for ratification, the people said, requesting anonymity. The process is expected to take at least six months. Prime Minister Christopher Luxon on Sunday confirmed the signing of the agreement. “It’s once in a generation agreement,” he said in a video post on X, adding that India’s rise to the world’s third largest economy would offer Kiwi exporters “unprecedented access” to a market of 1.4 billion people. ALSO READ | FTA with New Zealand will boost leather, other industries: Piyush Goyal “With so much global unrest, a trade agreement with India has never been more important for New Zealand’s prosperity. Signing the FTA allows New Zealand to initiate a formal parliamentary treaty examination and means the public can scrutinise the agreement in full,” New Zealand’s trade minister Todd McClay said ahead of his visit to India to sign the deal. In a post on X on Friday, Union commerce minister Piyush Goyal said: “As we approach the #IndiaNZFTA signing on 27th April 2026, his visit marks a defining moment in our bilateral journey, reflecting the trust, shared values, and common vision that underpin our partnership for sustainable economic growth, driving prosperity for both our nations.” Goyal met McClay and his wife at the Taj Mahal on Sunday. “This FTA will pave the way for enhancement of business and trade between New Zealand and India within a few months. The Indian goods will reach New Zealand markets without any tax or import duty and besides other Indian cities, Agra too will benefit with its leather industry, handloom, handicraft and ODOP items finding new market,” Goyal told reporters. ALSO READ| 'More jobs, income': New Zealand PM backs India FTA even as foreign minister objects McClay is leading a cross-party delegation of parliamentarians and more than 30 business representatives, according to a New Zealand government statement. Later in the day, both ministers attended India-New Zealand Business Meet at a hotel in Agra. During the meet, McClay said strengthening of business ties between New Zealand and India will open doors for trade of raw material besides boosting design and manufacturing sector. “Had an enriching industry engagement in Agra with leaders from the leather & footwear, light engineering, AYUSH, pharma, medical devices and sports goods sector, joined by my friend Mr Todd McClay, Minister for Trade and Investment, New Zealand,” Goyal said in a post on X. The agreement includes a proposed $20 billion investment commitment by New Zealand in India over 15 years. India and New Zealand concluded FTA negotiations on December 22, 2025, in nine months. Narendra Modi and Luxon announced the conclusion, describing it as reflecting “shared ambition and political will to further deepen ties”. Under the agreement, India has secured zero-duty access for all goods in New Zealand, along with concessions on professional mobility, while protecting its dairy sector. In return, India has allowed calibrated market access across 70.03% of tariff lines, covering 95% of New Zealand’s exports. New Zealand will receive immediate tariff elimination on 30% of tariff lines such as sheep meat, wool, leather, wooden logs and metal scraps. (With inputs from HTC in Lucknow)