New Zealand, India sign ‘once-in-a-generation’ free trade deal in New Delhi
New Zealand and India have formally signed a Free Trade Agreement in New Delhi, marking what officials are calling a “once-in-a-generation” deal aimed at significantly boosting economic ties between the two countries.
The deal was signed by Trade Minister Todd McClay and Minister of Commerce and Industry of India, Piyush Goyal, in the presence of New Zealand delegation at India Trade Promotion Organisation (ITPO) - Bharat Mandapam.
The agreement, signed late Monday night (NZT), is expected to give Kiwi exporters greater access to one of the world’s largest and fastest-growing consumer markets. Trade Minister Todd McClay led the New Zealand delegation for the signing, which included MPs from across party lines and more than 30 business representatives.
Indian minister Piyush Goyal acknowledged the leadership of the prime ministers of both countries in concluding the deal in a record nine months.
"India’s first women-led Free Trade Agreement and a defining milestone in our bilateral economic journey," Goyal said.
"It grants 100% duty-free access for Indian exports to New Zealand, opening significant opportunities for MSMEs, farmers, women, youth, professionals and job-creating sectors, while safeguarding India’s sensitive interests through a balanced and calibrated framework."
He further said the forward-looking agreement would facilitate $20 billion of investment into India, deepening cooperation in trade, services, investment, innovation, mobility, agriculture productivity and education, and creating pathways for skilled talent and students.
"A truly win-win partnership that advances the vision of Viksit Bharat, strengthens India-New Zealand ties, and sets a new benchmark for inclusive and trusted global cooperation."
Prime Minister Christopher Luxon in a tweet on 27 April said,
"Just over a year ago, I met with Prime Minister Modi in India. We agreed then, that we’d launch negotiations on a free trade agreement. For decades, many people said it couldn’t be done. But tonight, that deal gets signed."
Luxon further mentioned that signing of the deal meant more jobs on farms and orchards, "it means more money coming into local communities, and it means more opportunities for your family to get ahead."
McClay in an earlier statement before his visit to India had said that FTA is "such a significant achievement for New Zealand."
"If you think about it as 1.4 billion people in India, their wealth is growing, they are going to become the consumers of the future.”
"The New Zealand economy is getting on at the ground floor of that and I think, in the future, this will be one of the most significant trade agreements to help secure our economy - but a lot of people have worked very hard to make sure we can get there," McClay had said earlier as quoted by RNZ.
The deal follows sustained diplomatic efforts, with McClay travelling to India seven times since the current coalition government took office. Securing a trade agreement with India had also been a key election commitment made by Prime Minister Christopher Luxon during a televised debate in 2023.
Political backing for the agreement has been mixed. The Labour Party confirmed last week it would support the deal, allowing the necessary legislation to move through Parliament. Its backing proved crucial after New Zealand First announced its opposition shortly before the agreement was finalised.
Party leader Winston Peters has raised concerns over migration provisions within the deal, as well as limited gains for the dairy sector. He also questioned a clause requiring the government to help facilitate US$20 billion in private investment into India over 15 years.
Labour’s support came with conditions, including several policy concessions, and a warning that the investment target was “very unrealistic” and “almost impossible” to achieve.
Ahead of the signing, Luxon said in a social media post, “New Zealand’s Free Trade Agreement with India will be signed on Monday night,” while sharing a video outlining its expected benefits.
In the video, he emphasised the scale of the opportunity, stating, “We are signing a Free Trade deal with India that opens one of the biggest markets in the world to Kiwi exporters.”
New Zealand and India have formally signed a Free Trade Agreement in New Delhi, marking what officials are calling a “once-in-a-generation” deal aimed at significantly boosting economic ties between the two countries.
The deal was signed by Trade Minister Todd McClay and Minister of Commerce and...
New Zealand and India have formally signed a Free Trade Agreement in New Delhi, marking what officials are calling a “once-in-a-generation” deal aimed at significantly boosting economic ties between the two countries.
The deal was signed by Trade Minister Todd McClay and Minister of Commerce and Industry of India, Piyush Goyal, in the presence of New Zealand delegation at India Trade Promotion Organisation (ITPO) - Bharat Mandapam.
The agreement, signed late Monday night (NZT), is expected to give Kiwi exporters greater access to one of the world’s largest and fastest-growing consumer markets. Trade Minister Todd McClay led the New Zealand delegation for the signing, which included MPs from across party lines and more than 30 business representatives.
Indian minister Piyush Goyal acknowledged the leadership of the prime ministers of both countries in concluding the deal in a record nine months.
"India’s first women-led Free Trade Agreement and a defining milestone in our bilateral economic journey," Goyal said.
"It grants 100% duty-free access for Indian exports to New Zealand, opening significant opportunities for MSMEs, farmers, women, youth, professionals and job-creating sectors, while safeguarding India’s sensitive interests through a balanced and calibrated framework."
He further said the forward-looking agreement would facilitate $20 billion of investment into India, deepening cooperation in trade, services, investment, innovation, mobility, agriculture productivity and education, and creating pathways for skilled talent and students.
"A truly win-win partnership that advances the vision of Viksit Bharat, strengthens India-New Zealand ties, and sets a new benchmark for inclusive and trusted global cooperation."
Prime Minister Christopher Luxon in a tweet on 27 April said,
"Just over a year ago, I met with Prime Minister Modi in India. We agreed then, that we’d launch negotiations on a free trade agreement. For decades, many people said it couldn’t be done. But tonight, that deal gets signed."
Luxon further mentioned that signing of the deal meant more jobs on farms and orchards, "it means more money coming into local communities, and it means more opportunities for your family to get ahead."
McClay in an earlier statement before his visit to India had said that FTA is "such a significant achievement for New Zealand."
"If you think about it as 1.4 billion people in India, their wealth is growing, they are going to become the consumers of the future.”
"The New Zealand economy is getting on at the ground floor of that and I think, in the future, this will be one of the most significant trade agreements to help secure our economy - but a lot of people have worked very hard to make sure we can get there," McClay had said earlier as quoted by RNZ.
The deal follows sustained diplomatic efforts, with McClay travelling to India seven times since the current coalition government took office. Securing a trade agreement with India had also been a key election commitment made by Prime Minister Christopher Luxon during a televised debate in 2023.
Political backing for the agreement has been mixed. The Labour Party confirmed last week it would support the deal, allowing the necessary legislation to move through Parliament. Its backing proved crucial after New Zealand First announced its opposition shortly before the agreement was finalised.
Party leader Winston Peters has raised concerns over migration provisions within the deal, as well as limited gains for the dairy sector. He also questioned a clause requiring the government to help facilitate US$20 billion in private investment into India over 15 years.
Labour’s support came with conditions, including several policy concessions, and a warning that the investment target was “very unrealistic” and “almost impossible” to achieve.
Ahead of the signing, Luxon said in a social media post, “New Zealand’s Free Trade Agreement with India will be signed on Monday night,” while sharing a video outlining its expected benefits.
In the video, he emphasised the scale of the opportunity, stating, “We are signing a Free Trade deal with India that opens one of the biggest markets in the world to Kiwi exporters.”
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