India and New Zealand on Monday signed the long-negotiated free trade agreement in New Delhi, marking the conclusion of months of talks and bringing the deal a step closer to coming into force.

Trade minister Todd McClay signed the deal alongside India’s commerce and industry minister Piyush Goyal on April 27, following a final round of engagements that included a joint business summit.

McClay travelled with a delegation that included MPs from across parties and at least 30 business representatives, underscoring the government’s push to deepen economic ties with India.

The full text of the deal is expected to be presented in Parliament on April 28, and later the government will move the enabling legislation to give wheels to the deal.

Its path through Parliament has also been cleared, with Chris Hipkins confirming Labour’s support last week, providing the numbers needed for ratification after Winston Peters and New Zealand First signalled their opposition.

Big wins for New Zealand's exporters

1. Wine

Tariffs fall over a defined timeline.

Current: 150%

Post-FTA: Reduced by 66–83% over 10 years, to 25–50% final tariffs.

Tariffs begin to fall from entry into force, with full reductions phased in over a decade.

2. Apples

Tariff cuts with quota access.

Current: 50%

Post-FTA:Reduced to 25% for 32,500 tonnes from day one.

Expands to 45,000 tonnes over 6 years.

A combination of tariff reduction and volume access applies.

3. Kiwifruit

Immediate access plus partial tariff cuts.

Current: 33%

Post-FTA: 0% tariff for 6,250 tonnes from day one, rising to 15,000 tonnes over 6 years.

Outside quota: 50% reduction to 16.5% from day one.

4. Manuka honey

Phased reduction in high tariffs.

Current: 66%

Post-FTA: Reduced by 75% over 5 years, to about 16.5%.

Applies alongside quota-based access for premium segments.

5. Sheepmeat and wool

Tariffs removed immediately

Current: Sheepmeat: 33%; wool: 2.75%

Post-FTA: 0% from day one

Big wins for Indian exporters

1. Pharmaceuticals

Tariffs removed, processes streamlined.

Current: Up to 5% tariffs

Post-FTA: 0% tariffs across all lines

New Zealand imported US$1.38 billion worth of pharmaceuticals in 2024, with India accounting for around 5%

2. Textiles and clothing

Full tariff elimination.

Current: Up to 10% tariffs

Post-FTA: 0% tariffs across all textile lines

India already supplies around 16% of New Zealand’s made-up textile imports.

3. Machinery and vehicles

Tariffs removed across categories.

Current: Up to 10% tariffs

Post-FTA: 0% tariffs

New Zealand imports billions of dollars in machinery and vehicles annually, with India currently holding a small share.

4. Gems and jewellery

Tariffs eliminated

Current: Up to 5% tariffs

Post-FTA: 0% tariffs

New Zealand imported about US$287 million in this category in 2024, with India as a major supplier.

5. Processed foods, tea, coffee and spices

Tariffs reduced to zero.

Current: Up to 5% tariffs

Post-FTA: 0% tariffs

New Zealand imported around US$141 million in these categories in 2024.