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Todd McLay told News18 that Indian professionals will be able to live in New Zealand for up to three years, gaining valuable international experience.
New Zealand’s Trade and Investment Minister Todd McLay during the signing of the India-New Zealand Free Trade Agreement in New Delhi on Monday. (PTI)
India and New Zealand have signed what both sides are calling a “once in a generation” free trade agreement, marking a major shift in economic ties after years of stalled negotiations. The deal finalized between Commerce Minister Piyush Goyal and New Zealand Trade Minister Todd McLay promises zero-tariff access, deeper services integration and a significant boost to bilateral investments.
During his visit to New Delhi, CNN-News18 sat down with McClay to unpack the fine print. In this exclusive conversation, he laid out the key pillars of the deal, ranging from immediate tariff cuts and an estimated $20 billion investment to visa pathways for skilled Indians. He also addressed concerns related to agriculture, stressing that New Zealand exports are unlikely to have a significant impact on Indian farmers, while stressing jobs, mobility and the broader strategic rationale behind the agreement.
Watch the full interview here:
Edited excerpts below:
We have seen FTAs being announced with big promises before. What is the concrete timeline for tariff reduction and actual access to services?
We have just signed the agreement, completed nine months of negotiations and completed the legal process. Now the target is to implement it before the end of this year.
“For Indian exporters, this means zero tariffs from day one. On the New Zealand side, about 95% of exports will see either immediate tariff elimination or phased reductions.
“We see this as a major opportunity not only to boost two-way trade, but also to deepen economic integration. This will encourage businesses in both countries to build long-term partnerships, create jobs, strengthen resilience and give us more choices in an increasingly uncertain global trade environment.
The deal gives Indian exports 100% duty-free access to New Zealand from day one. But New Zealand gets phased or selective access to India. Is this really a balanced compromise, or has New Zealand made deeper concessions than it appears?
It is a balanced deal. India is a market of 1.4 billion people, while New Zealand has only 5 million people, but both sides have benefited and we expect the trade to grow significantly.
Relationships will be complementary. For example, in services, India has made some of its strongest commitments by opening access to New Zealand companies under the MFN framework, which we are very pleased with.
I have brought about 30-40 businesses with me to New Delhi, and many are already announcing deals, some have grown rapidly because of this agreement. These range from ICT partnerships and banking to manufacturing in India for global exports as well as direct sales to Indian consumers.
As this agreement will be fully implemented over the next several years, it will provide time for businesses to build partnerships, strengthen relationships, and grow trade in a stable, predictable manner that will benefit both countries.
Sensitive areas such as dairy and agriculture have been cordoned off or protected. So, what exactly did New Zealand achieve in agriculture? Were any compromises made to close the deal?
Look, every business deal comes with sensitivities, and this one is no different. Minister Piyush Goyal and I agreed to find practical solutions that work for both sides, rather than getting stuck on teething issues.
There are wins across the board. For example, in the field of agriculture, New Zealand has secured the world’s first tariff-free quota for kiwifruit in India. Our exporters will also work with Indian producers to improve quality and yield, so it is a win-win deal. Similar opportunities exist in apple and honey, including premium Manuka honey.
We recognize that dairy is a sensitive sector for India given the large number of small farmers and we respect that. But there are still strong areas for cooperation, including value-added food exports and reprocessing for global markets.
Overall this is a balanced agreement. This opens the door to deeper collaboration between New Zealand and Indian businesses, and there is real excitement about the long-term opportunities this will create for both countries.
New Zealand is a major agricultural exporter. How will you assure Indian farmers that this deal will not diminish their livelihoods?
New Zealand has trade and investment agreements with almost 100 countries, so our approach is a “and strategy”; We want to do business with everyone including India. It also means that our impact on India’s huge agricultural market is unlikely to be significant.
Our focus here is on cooperation, not competition. We want to work together with India to help improve productivity, strengthen supply chains and ultimately boost farmers’ incomes. We have already committed to support this with our private sector.
Plus, consumers benefit from more choice. And I have a very clear message for Indian consumers: the highest quality, safest food in the world comes from New Zealand farms.
The deal calls for New Zealand to invest $20 billion in India over 15 years. Are these firm, time-bound commitments or symbolic targets that may or may not be realized?
Well, this is a clear commitment of the government to actively promote investment, which we have included in the agreement for the first time. India has also agreed to grant faster approvals through a single-window system, which will make it much easier for New Zealand companies to invest here.
We expect investment to increase naturally as both economies strengthen ties. There will be more trade missions, stronger trade relations and greater ease of doing business on both sides.
This is an ambitious target of $20 billion, but we are serious about it. We are committed to working with India to make this a reality.
This FTA clearly leans heavily towards professional mobility, including visa routes. So, will Indian professionals find it easier to move to New Zealand, or are those provisions still limited and conditional?
There are many sectors in our economy where we face shortage of skilled professionals, so we are actively trying to bring in talent from all over the world. As part of this agreement, we have introduced a dedicated visa route for Indian workers in sectors such as healthcare, ICT, construction and engineering.
Of course, applicants must meet New Zealand’s qualifications and standards requirements, but this is a clear commitment to enabling skilled Indians to come and work with us. They will be able to stay for three years, gaining valuable international experience.
The important thing is that it is a two-way benefit. India wants these professionals to return with experience that can help strengthen its own economy and we fully support this. For us, it fills critical gaps in our workforce.
So, it’s a win-win. It creates opportunities for young, capable Indians, supports our economy, and also helps build long-term relationships. Ultimately, the biggest benefit from this FTA will be the strong people-to-people ties and deep cultural ties between our two countries.
Is the deal purely economic, or also part of a broader Indo-Pacific strategy to reduce dependence on China?
This is both economic and strategic. I mentioned earlier, we follow an “and strategy”, which means New Zealand wants to trade with everyone – China, the US, the EU, India, Japan and others – giving our businesses the freedom to choose their markets.
Also, it is strategic because in a world of uncertainty or slow growth in some sectors, it gives more options to our exporters, and the same applies to India. It’s about diversifying and remaining flexible.
And yes, the economic case is very strong. India is the world’s most populous country and is on its way to becoming the third largest economy.
This deal, completed in just nine months, is one of the highest quality deals we have done. It positions New Zealand businesses in a market where the growth story is just beginning.
April 28, 2026, 15:18 IST
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