The India-New Zealand Free Trade Agreement is likely to come into force within the next month after New Zealand's Parliament passed legislation to implement the pact, New Zealand Trade and Investment Minister Todd McClay said.

The Free Trade Agreement has moved closer to implementation after New Zealand's Parliament passed legislation giving effect to the pact. Speaking to ANI in Wellington, New Zealand Trade and Investment Minister Todd McClay said the two countries are now working on exchanging official notes, a step required to begin the process of bringing the agreement into force.

"We’re very close now. It passed in our Parliament with a significant majority — 93 votes to 26," McClay said. He added that the exchange of official notes could lead to the agreement entering into force within the next month.

The New Zealand Parliament passed the implementing legislation on September 15, while Royal assent was granted on September 17. The official parliamentary record, however, shows 93 votes in favour and 29 against.

India's Ministry of Commerce and Industry welcomed the passage of the legislation, describing it as an important step towards bringing the agreement into force. India and New Zealand signed the FTA in New Delhi on April 27, 2026, after concluding negotiations in nine months.

Duty-free access for Indian exports

Under the agreement, 100 per cent of Indian exports to New Zealand will receive duty-free access from the date the FTA enters into force, subject to the agreement's provisions.

The arrangement covers a wide range of Indian products, including textiles and apparel, leather and footwear, engineering goods, pharmaceuticals, agriculture and processed food products. McClay said he expects greater trade in sectors such as chemicals, pharmaceuticals and machinery.

The agreement also provides enhanced and preferential access to the Indian market for selected New Zealand exports, including wood, wool, sheep meat and raw leather hides.

Services and investment also covered

The agreement extends beyond trade in goods and includes provisions relating to services, investment and professional, student and youth mobility. McClay identified information and communications technology as one area where bilateral services trade could expand.

According to India's Commerce Ministry, the agreement also provides for facilitating USD 20 billion of investment into India. It includes cooperation in areas such as agricultural productivity, pharmaceuticals and medical devices, traditional medicine and AYUSH, technology and trade facilitation.

The pact also creates pathways connected with the movement of professionals and students between the two countries.

India-New Zealand trade target

McClay said Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon have set an ambitious target of doubling bilateral trade by 2030.

Two-way trade currently stands at around NZ$4 billion, according to McClay. New Zealand's Ministry of Foreign Affairs and Trade has put the 2030 ambition at NZ$7 billion.

McClay said the new agreement could support further growth in bilateral trade by reducing tariffs and creating greater certainty for businesses.

Direct flights and people-to-people ties

The New Zealand minister also said the FTA could support greater movement between the two countries, including among students, professionals, tourists and business travellers.

He said New Zealand expects direct flights between India and New Zealand within about a year, which he said could further strengthen people-to-people links and support greater economic engagement.

Why the agreement matters

The FTA comes after years of discussions between India and New Zealand and was concluded in nine months. McClay attributed the speed of negotiations to growing political and institutional trust between the two countries.

The agreement also comes amid wider uncertainty over global trade and tariffs. McClay said the pact demonstrates the importance of predictable trade rules and provides businesses in both countries with greater certainty over market access.

India's Commerce Ministry said the agreement represents a significant step in strengthening bilateral economic ties and creating opportunities for businesses and communities in both countries.