Prime Minister Narendra Modi held a telephonic conversation with the Prime Minister of New Zealand, Christopher Luxon, on Monday, during which the two leaders jointly announced the successful conclusion
of the historic and mutually beneficial India-New Zealand Free Trade Agreement (FTA), a release stated.
The FTA, described as ambitious and landmark, was finalised just nine months after negotiations began during PM Luxon’s visit to India in March 2025.
Both leaders highlighted that the record-time conclusion reflects the shared ambition and political will to further deepen bilateral ties between the two countries.
According to the release, the FTA is expected to significantly deepen economic engagement, enhance market access, promote investment flows, strengthen strategic cooperation, and open new opportunities for innovators, entrepreneurs, farmers, MSMEs, students, and youth across multiple sectors.
During their conversation, the leaders expressed confidence that the agreement would help double bilateral trade over the next five years and facilitate an investment of USD 20 billion from New Zealand into India over the next 15 years.
Speaking on the broader partnership, the two leaders also welcomed progress in other areas of cooperation, including defence, sports, education, and people-to-people ties.
They reaffirmed their commitment to further strengthening the India-New Zealand partnership and agreed to remain in close contact to ensure the successful implementation of the agreement.
The FTA marks a major milestone in India-New Zealand relations, offering a strong and credible foundation for enhanced economic and strategic collaboration between the two countries.
Both leaders underscored that the agreement is poised to serve as a catalyst for greater trade, investment, innovation, and shared opportunities, benefiting citizens and businesses in both nations.
Later, in an X post, PM Luxon said the negotiations for the free trade agreement with India have been concluded.
The FTA reduces or removes tariffs on 95 per cent of our exports to India. It’s forecast that New Zealand exports to India could increase from USD 1.1 billion to USD 1.3 billion per year over the coming two decades, he mentioned.
“I’ve just spoken with India’s Prime Minister Narendra Modi following the conclusion of the NZ-India Free Trade Agreement,” he added.
“The agreement builds on the strong friendship between our two countries. India is one of the fastest-growing economies in the world, and this gives Kiwi businesses access to 1.4 billion Indian consumers,” the Prime Minister mentioned.
This is India’s seventh FTA in the last few years after Oman, the UK, the EFTA countries, the UAE, Australia and Mauritius.
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