Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon announced the successful conclusion of the India-New Zealand Free Trade Agreement (FTA) during a telephone conversation on December 22.
Negotiations began in March and concluded in a record nine months, reflecting both nations’ political will to deepen bilateral economic ties. The agreement is seen as historic, ambitious, and mutually beneficial.
The leaders expressed confidence that bilateral trade between India and New Zealand could double in the next five years.
The FTA will facilitate $20 billion of New Zealand investment into India over the next 15 years.
Officials highlighted that the agreement will enhance market access, promote investment flows, and strengthen strategic cooperation across sectors, including innovation, entrepreneurship, agriculture, MSMEs, and education.
The FTA eliminates and reduces tariffs on 95% of New Zealand’s exports, among the highest of any Indian trade agreement.
Approximately 57% of these exports will be duty-free from day one, increasing to 82% upon full implementation, while the remaining 13% will see significant tariff cuts.
This puts New Zealand exporters on equal or better footing compared to competitors and opens opportunities in India’s rapidly expanding middle-class market.
New Zealand officials highlighted that India’s economy is projected to grow to NZ$12 trillion by 2030.
The FTA will enable New Zealand exporters to access the world’s second-largest market, accelerating the country’s goal of doubling export value over the next decade.
The leaders also welcomed progress in sports, education, and people-to-people ties, reaffirming their commitment to further strengthen the India-New Zealand partnership.
The FTA will catalyse cross-sectoral growth and create opportunities for students, youth, innovators, and entrepreneurs in both countries.
With greater market access and improved investment flows, India and New Zealand will actively leverage shared opportunities.
The FTA sets the stage for a stronger, mutually beneficial partnership over the coming decades, fostering long-term economic growth, trade expansion, and strategic cooperation.
The India-New Zealand Free Trade Agreement marks a milestone in bilateral relations, combining economic ambition with strategic foresight.
By fostering deeper engagement, the agreement promises sustainable trade growth, wider investment opportunities, and closer collaboration across multiple sectors, strengthening the bond between the two nations for years to come.
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