‘Thousands of jobs’: Todd McClay talks up benefits after signing India free trade deal
Monday, 27 April 2026
The Government says a historic trade deal with India will boost jobs and lift incomes for New Zealanders, despite earlier internal friction within the coalition.
Trade and Investment Minister Todd McClay signed the New Zealand-India Free Trade Agreement (FTA) in New Delhi on Monday.
The deal aims to double the value of New Zealand's exports within 10 years by opening access to a market of 1.4 billion people.
Prime Minister Christopher Luxon said the agreement would “open the doors of opportunity” to the world's third-largest economy.
He added that with one in four New Zealand jobs tied to trade, the deal would result in “more money in Kiwis’ pockets”.
In a speech on Monday evening before the signing, McClay framed the agreement as a major milestone in the relationship between the two countries, saying it “represents a new and exciting chapter in the New Zealand and India relationship”.
He thanked negotiators and industry representatives involved, saying both sides had put in a “tremendous amount of effort” to reach the deal.
McClay said the agreement would create significant opportunities for New Zealand, describing it as a “once-in a-generation agreement” that “delivers opportunities that New Zealand exporters have never had in India”.
He added it would “deliver thousands of jobs and unleash huge potential for our world-class exporters”, while also helping to grow new partnerships and increase trade between the two nations.
After the deal was signed, McClay and India’s Minister of Commerce and Industry, Piyush Goyal, exchanged gifts, marking the occasion on a more personal note.
McClay presented Goyal with a New Zealand Black Caps cricket jersey bearing his name, a nod to the recent T20 final between the two countries and their shared passion for the sport, something Goyal had also acknowledged in his remarks before the signing.
However, the signing comes amid previous tension between coalition partners. Deputy Prime Minister Winston Peters and NZ First have expressed opposition to certain trade concessions, specifically land ownership and protections for local primary sectors.
Despite those earlier internal disagreements, the Government moved forward with the signing on Monday.
Under the agreement, 95% of New Zealand’s exports to India will see tariffs – essentially taxes on imported goods – either reduced or removed.
From day one, 57% of exports will be duty-free, including sheep meat, wool, coal and most forestry products. This is expected to rise to 82% as the deal is fully rolled out.
Specific changes for producers and consumers include:
Mānuka honey: Tariffs cut from 66% to 16.5% over five years.
Wine: Tariffs of 150% slashed to 25% or 50% over a decade.
Fruit: Duty-free access for cherries, avocados and blueberries within 10 years, and a massive increase in the quota for kiwifruit.
Seafood: Most products, including mussels and salmon, become duty-free over seven years.
The deal also includes a “Most Favoured Nation” clause. This ensures that if India gives a better deal on wine or services to the European Union in the future, New Zealand exporters will automatically receive the same benefits.
“That clause will be worth tens of millions of dollars in extra exports for the New Zealand economy,” Luxon said.
McClay said the deal provided “economic security” for New Zealand during a time of global unrest.
“This deal will deliver thousands of jobs and billions of dollars in additional exports,” he said.
The agreement will now go through a standard parliamentary process, where it will be examined by the Foreign Affairs, Defence and Trade Committee, allowing the public to have their say.