India and New Zealand will sign a free trade agreement on 27 April in New Delhi, New Zealand Prime Minister Christopher Luxon confirmed this week.
The deal, which was concluded in December 2025 after just nine months of negotiations, will provide New Zealand exporters access to a market of 1.4 billion consumers in what the government has described as a once-in-a-generation opportunity.
Trade and Investment Minister Todd McClay will travel to New Delhi over the weekend to formally sign the agreement following the completion of legal verification.
The FTA will eliminate or reduce tariffs on 95 per cent of New Zealand exports to India, with approximately 57 per cent becoming duty-free immediately upon implementation. Key beneficiaries include lamb, wool, coal, leather, forestry goods, seafood, infant formula and kiwifruit.
India will gain duty-free access for 100 per cent of its exports to New Zealand, benefiting sectors including textiles, pharmaceuticals and engineering goods.
The agreement also includes provisions for 5,000 temporary work visas annually for skilled Indian professionals, with workers permitted to stay for up to three years.
Sensitive sectors such as dairy products have been excluded from the agreement to protect domestic interests in both nations.
The deal faces political hurdles at home, with coalition partner New Zealand First opposing the agreement over immigration concerns.
This has forced Luxon to seek cross-party support, with Labour leader Chris Hipkins yesterday confirming his party would back the enabling legislation despite reservations about a US$20 billion investment commitment clause.
The full text of the agreement will be made public the day after signing, triggering a parliamentary review process.
Two-way trade between the countries currently sits at NZ$3.68 billion, with both governments aiming to double that within five years.
The agreement, which Luxon made a centrepiece of his 2023 election campaign, is expected to attract nearly $20 billion in investment over 15 years. Business groups have welcomed the deal, with 28 exporters and industry associations signing an open letter urging swift parliamentary ratification.
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