The Trade Minister's hitting back at suggestions the India Free Trade Agreement will lead to a flood of immigration.

Foreign Minster Winston Peters has said the agreement won't let us specifically cap Indian student visas, among other commentary on the deal.

Todd McClay's confirmed that's the case but says they can cap student visas from all countries - as long as India isn't specifically discriminated against.

"Others are saying is that hundreds of thousands of people, or tens of thousands of people are going to come over to New Zealand as a result of this agreement - I just want to take it back a step, this is a trade agreement, it actually isn't an immigration agreement." 

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