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Implementation is expected within a month as India and New Zealand work on exchanging official notes.
The agreement has already cleared the New Zealand Parliament and received royal assent.
McClay said the pact gives Indian exporters duty-free access or zero-tariff access from day one.
He said the deal could expand trade ties and create mutual economic opportunities.
Why it mattersThe deal could lower trade barriers and shape the next phase of India-New Zealand economic ties.
More context
Some reports said leaders aim to double bilateral trade by 2030 and deepen cooperation in areas such as agriculture, technology, and renewable energy.