Wellington: The free trade agreement between India and New Zealand will enter into force on October 20 after both countries completed the formal ratification process.
New Zealand Trade and Investment Minister Todd McClay exchanged the formal ratification documents with India's High Commissioner to New Zealand, Muanpuii Saiawi, at Parliament in Wellington on Monday. The exchange confirmed that both countries had completed the domestic procedures needed to bring the agreement into effect.
The agreement was signed in New Delhi on April 27 by McClay and India's Commerce and Industry Minister Piyush Goyal. Negotiations between the two countries were concluded in December 2025 after talks began earlier that year.
Under the agreement, tariffs on Indian goods imported into New Zealand will be removed from the date the pact takes effect. The arrangement is expected to provide greater opportunities for Indian exporters in areas including textiles, engineering goods, pharmaceuticals, agriculture and processed food.
New Zealand will also receive greater access to the Indian market, although the tariff reductions will be introduced in stages. About 57 per cent of New Zealand exports to India will become duty free from the first day of the agreement. That coverage will rise to about 82 per cent over time, while tariffs on about 95 per cent of New Zealand's current exports will eventually be eliminated or significantly reduced.
The first group of New Zealand products to benefit includes sheep meat, wool and coal. More than 95 per cent of forestry and wood exports will also receive duty free access from the beginning. New Zealand exporters will receive preferential access for products including apples, kiwifruit and albumins.
The agreement also provides for a second round of tariff cuts from January 1, 2027. Further reductions will be introduced according to the agreed tariff schedule.
India has retained protections for some sensitive agricultural products. The agreement does not provide immediate unrestricted access to the Indian market for all New Zealand agricultural exports, although some dairy based products receive specific tariff concessions and quota arrangements.
The agreement also covers services, investment and mobility. It includes provisions relating to students, skilled workers and professional services, alongside measures intended to provide greater certainty for businesses and service providers.
New Zealand has committed to facilitating US$20 billion in private sector investment in India over the next 15 years. The commitment is part of efforts to strengthen investment links and encourage businesses from the two countries to expand their operations.
Trade between the two countries was worth about US$2.3 billion in the 12 months through June. India and New Zealand have also set a target of doubling bilateral trade by 2030.
The agreement comes as both countries seek to expand their international trade relationships. For New Zealand, the deal provides greater access to the large Indian market. For India, it provides duty free access for its exporters to the New Zealand market and a framework covering investment, services and economic cooperation.
The agreement now moves from negotiation and ratification to implementation. Businesses in both countries will be able to use the new tariff arrangements once the agreement enters into force on October 20.