India And New Zealand Seal Historic Free Trade Pact After High-Level Talks

India and New Zealand have taken a major step forward in strengthening bilateral relations with the successful conclusion of a comprehensive Free Trade Agreement (FTA), jointly announced by Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon during a telephone conversation.

The two countries finalised the agreement in just nine months after launching negotiations during Prime Minister Luxon’s visit to India in March 2025, demonstrating strong political commitment and a shared ambition to deepen economic engagement.

Boost to Trade and Investment

Both leaders expressed confidence that the FTA would act as a catalyst for significantly expanding trade, investment and innovation.

With the agreement providing enhanced market access and reduced trade barriers, India and New Zealand aim to double bilateral trade within the next five years.

New Zealand has also indicated plans to facilitate investments worth nearly USD 20 billion in India over the next 15 years, particularly in manufacturing, infrastructure, services and innovation-led sectors.

Opportunities Across Key Sectors

The FTA is expected to deliver wide-ranging benefits for farmers, MSMEs, workers, entrepreneurs and young professionals.

Upon implementation, Indian exports will receive zero-duty access across all tariff lines, supporting labour-intensive industries such as textiles, apparel, leather and footwear, alongside growth-oriented sectors including engineering, electronics, pharmaceuticals and automobiles.

Agriculture remains a key focus, with new opportunities opening for Indian products such as fruits, vegetables, spices, coffee, cereals and processed foods.

Agri-technology partnerships and centres of excellence will actively enhance productivity, improve quality, and raise farm incomes, while the agreement actively protects sensitive domestic sectors.

Services, Mobility and People-to-People Ties

The agreement also expands avenues for India’s services sector, covering IT, finance, education, tourism and healthcare.

Indian professionals and students will benefit from New Zealand’s new provisions on student mobility, post-study work, and traditional medicine. Enhanced mobility measures, including dedicated work visas, will further strengthen people-to-people links.

Beyond trade, the leaders welcomed progress in defence cooperation, sports, education and cultural exchanges, reaffirming their commitment to a broader strategic partnership. Both prime ministers agreed to remain in close contact as the partnership enters a new phase.

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