New Delhi: New Zealand Trade and Investment Minister Todd McClay has said that the India–New Zealand Free Trade Agreement (FTA) serves as a beacon, a bright light that shows how negotiating high-quality agreements and honouring commitments can help economies grow, ultimately benefiting citizens of both countries.

In an exclusive interview in April, Mr McClay said the proposed deal is expected to be placed before Parliament immediately, with swift movement towards implementation. He noted that the agreement could come into force before the end of the year, followed by a phased rollout over seven years, reflecting both urgency and long-term planning.

From the outset, the agreement promises significant gains. On day one, all exports from India to New Zealand will attract zero tariffs, while more than half of New Zealand’s exports will also move to zero tariffs immediately. The remaining segments will transition gradually over the seven-year implementation period, ensuring stability while opening markets.

At its core, the FTA creates a framework of rights and obligations that businesses can rely upon. Mr McClay emphasised that such predictability is critical in a global trade environment marked by uncertainty, allowing investors and exporters to operate with confidence and clarity.

“This agreement is a bright beacon showing how trust-led trade can grow economies and benefit citizens.”

Sectoral benefits are expected across the board. Indian exporters will find opportunities spanning agricultural equipment, chemicals, fertilisers and manufactured goods, while New Zealand’s strengths in high-quality food production will complement India’s consumption needs, especially in areas such as lamb, seafood and horticulture.

Leadership played a decisive role in accelerating the agreement. Mr McClay credited Prime Minister Narendra Modi and Prime Minister Christopher Luxon for fostering a strong bilateral relationship, supported by high-level engagements and trade delegations that helped bring the negotiations to a swift conclusion.

Looking ahead, Mr McClay stressed that businesses must now take the lead. Governments have laid the foundation, but it is industry that must convert opportunity into tangible outcomes through trade missions, partnerships and active engagement between the two economies.