Wellington and New Delhi are poised to formalize a historic free trade agreement, with the official signing ceremony scheduled for April 27 in the Indian capital. Trade and Investment Minister Todd McClay confirmed that the legal review of the treaty has been finalized, paving the way for both nations to ratify what the government describes as a “once-in-a-generation” economic opportunity.

The pact provides New Zealand businesses unprecedented access to India’s massive consumer base of 1.4 billion people. Under the terms, 95% of New Zealand’s current exports will see tariffs either slashed or removed entirely—a level of market access McClay noted is among the highest India has ever granted in a bilateral trade deal.

Initial benefits include immediate duty-free status for more than half of current exports, such as timber, wool, and lamb products. This coverage is expected to reach 82% over the coming years, helping local exporters compete on an equal footing in one of the world’s most rapidly expanding economies.

Following the official signing, the agreement will undergo a rigorous domestic parliamentary process. The full text and a comprehensive national interest analysis will be presented to Parliament for review by a select committee, allowing the public to provide feedback before any enabling legislation is passed into law.

However, the announcement has sparked political friction at home. Labour leader Chris Hipkins criticized the government’s approach, characterizing the decision to sign without a guaranteed parliamentary majority as “recklessly irresponsible.” Hipkins argued that the administration is prioritizing political optics and insisted that the deal must be proven to benefit the country before receiving his party’s support.

Minister McClay dismissed these concerns, maintaining that the ratification process follows standard constitutional protocols. He emphasized that the deal remains open to multi-party scrutiny and that extensive consultations with coalition partners and opposition figures have already taken place.

Internal government tensions have also surfaced, with New Zealand First leader Winston Peters questioning the business community’s enthusiastic endorsement of the deal. Peters raised specific apprehensions regarding immigration provisions and suggested that some sectors were supporting the agreement without a full understanding of its potential consequences.

The treaty includes a framework for temporary work visas for skilled Indian professionals to address specific domestic labor shortages. Additionally, the deal secures improved market entry for New Zealand’s wine, services, and horticulture sectors, specifically benefiting exporters of apples, kiwifruit, and mānuka honey.

Government projections suggest that, if ratified, the agreement could inject tens of millions of dollars into the national economy annually through enhanced export volumes and significantly reduced trade barriers.