New Delhi [India], September 21 (ANI): Following the bilateral ratification of the Free Trade Agreement (FTA), New Zealand Trade and Investment Minister Todd McClay stated that both New Zealand and India can be proud of the very high-quality agreement that will deliver significant benefits for the citizens of the two countries.

The pact will enter into force on October 20, coinciding with Dussehra. Under the agreement, India secured duty-free access for 100 per cent of its exports to New Zealand from the day the pact takes effect. The agreement aims to provide a formal framework for deeper trade and economic cooperation between both partners, translating the bilateral economic relationship into expanded trade opportunities.

Addressing the gathering during a video conference with Union Commerce and Industry Minister Piyush Goyal on Monday, McClay commended the cooperative groundwork achieved by both administrations across the negotiation cycle.

"I thank you for your significant commitment, contribution and hard work over the last 2 years. I think both New Zealand and India can be proud of the very high quality agreement that will deliver significant benefits for the citizens of our two countries," McClay said.

"Today is a great day of celebration in New Zealand to know not only the ratification of the free trade agreement by our two nations, but a strengthening of our friendship and a clear signal to the world of when two like-minded countries decide to work together, how quickly good and important things can happen," he added.

Addressing the broader international trade landscape, McClay noted the deliberate stance taken by both sides to facilitate open cross-border commerce.

"In a time when around the world there is uncertainty in trade, we see tariff rates escalate. We see barriers being put up. India and New Zealand governments have said that we can agree terms that will be beneficial, that we will honor our commitments and give confidence to our business communities to invest, to grow, to form relationships and together to trade," he said.

Outlining the timeline of the engagement, McClay recalled that formal talks began when Prime Minister Christopher Luxon visited India last year alongside New Zealand's largest-ever trade delegation. 

Negotiations concluded within nine months, followed by the signing in New Delhi earlier this year and formal ratification nine months later.

"This is one of the highest quality agreements our two nations have been able to negotiate....This is the end of a process, the end of the negotiation where the agreement is in force. It's actually the start, the beginning of a new era in the relationship for India and New Zealand and an opportunity for us to make sure that the people-to-people cooperation, the culture, the sport, the business, the investment will continue," McClay said.

As per the govt data, India-New Zealand merchandise trade grew from USD 873 million in 2023-24 to USD 1.3 billion in 2024-25, registering 49 per cent growth.

Merchandise exports from India to New Zealand rose to USD 711 million in 2024-25, showing a 32 per cent increase.

India's services exports to New Zealand grew by 13 per cent in 2024 to USD 634 million, with major sectors including travel, IT and business services. In 2024-25, India's exports to New Zealand were higher than imports from the country, maintaining a positive trade balance. (ANI)