New Zealand Prime Minister Christopher Luxon has praised the newly concluded Free Trade Agreement (FTA) with India, calling it a landmark step that will help “build the future” for both nations. He said
the deal would lead to more jobs, higher incomes and stronger export growth for New Zealand.
In a post on X on Saturday, Luxon said his government had delivered on its promise to secure a trade deal with India during its first term. He described the agreement as a major economic breakthrough that opens access to India’s vast market of 1.4 billion consumers.
“We said we’d secure a Free Trade Agreement with India in our first term, and we’ve delivered. This landmark deal means more jobs, higher incomes and more exports by opening the door to 1.4 billion Indian consumers. Fixing the Basics. Building the Future,” reads his post.
India-New Zealand trade deal
India and New Zealand completed negotiations for the FTA in December 2025, making it one of India’s fastest-negotiated trade pacts. Talks were officially launched in March during Prime Minister Luxon’s visit to India. The agreement signals growing economic ties between the two countries and a shared focus on long-term growth.
Under the agreement, India will gain zero-duty access for all of its exports to New Zealand. This is expected to benefit Indian sectors such as textiles, pharmaceuticals, engineering goods and services.
In return, India will offer phased duty concessions on 70 per cent of its tariff lines, covering around 95 per cent of New Zealand’s exports. This move is expected to improve market access for New Zealand products, particularly in agriculture, food processing and specialised manufacturing.
A key feature of the deal is New Zealand’s commitment to invest USD 20 billion in India over the next 15 years. The investment framework follows a model similar to the European Free Trade Association approach.
These investments are expected to focus on manufacturing, infrastructure, services, innovation and job creation. The funding is likely to strengthen India’s investment environment while supporting New Zealand companies seeking long-term opportunities in one of the world’s fastest-growing economies.
