New Delhi: New Zealand Prime Minister Christopher Luxon announced on Wednesday, April 22, 2026, that a long-awaited Free Trade Agreement (FTA) with India will be officially signed in New Delhi next Monday, April 27. The agreement, which has been in the works for several years, is being hailed as a major economic breakthrough that will provide New Zealand exporters with unprecedented access to India’s market of 1.4 billion people. Prime Minister Luxon emphasized that the deal fulfills a significant campaign promise and is expected to boost national prosperity, supporting jobs and lifting wages by opening doors to one of the world’s fastest-growing economies.
The trade pact, which was largely concluded in December 2025, is among the most comprehensive FTAs India has ever signed, proposing to eliminate or reduce tariffs on 95% of New Zealand’s exports. Immediate duty-free access will be granted for sectors including sheep meat, wool, coal, and over 95% of forestry products. Over a phased period, tariffs will also be slashed for key products such as kiwifruit, apples, mānuka honey, and wine. In return, India has secured duty-free access for 100% of its exports to New Zealand, benefiting labor-intensive sectors like textiles, leather, and pharmaceuticals. Additionally, the deal includes a USD 20 billion investment commitment from New Zealand over the next 15 years.
Despite the economic promise, the agreement has triggered a domestic political storm in New Zealand. Coalition partner New Zealand First has withdrawn its support for the enabling legislation, with Deputy Leader Shane Jones sparking outrage by deriding the deal as a “butter chicken tsunami” and raising concerns over potential migration increases. The Labour Party has also expressed reservations, making the deal’s legislative passage uncertain. Nevertheless, Trade Minister Todd McClay is scheduled to travel to India with a large business delegation to formalize the pact, which both governments believe will establish a predictable and transparent framework for long-term strategic and economic cooperation.
