New Zealand PM Christopher Luxon Calls India FTA A Major Win For Exporters And Economy

New Zealand Prime Minister Christopher Luxon on Tuesday lauded the recently concluded Free Trade Agreement (FTA) with India, describing it as an ‘excellent’ deal with significant benefits for exporters and the national economy.

PM Christopher Luxon highlighted in an X post that the agreement will reduce or remove tariffs on 95 per cent of New Zealand’s exports to India, offering strong support to farmers, manufacturers, and exporters.

He said, “One of the most important parts of my job is getting out and hustling for New Zealand on the world stage. We’ve just concluded an excellent Free Trade Agreement with India – and it’s a credit to the hard work and persistence of Todd ‘Trade’ McClay and our negotiating team. The FTA reduces or removes tariffs on 95 per cent of our exports to India. Based on NZ’s growth in trade after other FTAs, the potential gain for our exporters and economy from this agreement is huge.”

“Trade already supports one in four New Zealand jobs, and this agreement strengthens that – backing our farmers, growers, manufacturers and exporters to compete on the world stage. If you’re building something great here in New Zealand and want to sell it to the world, National is backing you every step of the way. Because when we trade with the world, we grow our economy at home. That means more jobs, more investment, and higher wages for Kiwis,” PM Luxon said.

Modi-Luxon Announcement

The FTA was formally announced following a telephone conversation between Prime Minister Narendra Modi and Luxon on Monday. Both leaders described the agreement as a landmark milestone that will enhance trade, investment, innovation, and bilateral collaboration between India and New Zealand.

The agreement provides zero-duty access for all goods exports upon its entry into force and eliminates tariffs on 8,284 tariff lines, expanding India’s market access. It also opens new avenues in IT-ITES, finance, education, tourism, and audio-visual sectors.

New Zealand has committed to facilitating USD 20 billion in investments into India over the next 15 years, supporting manufacturing, infrastructure, services, innovation, and employment under India’s Make in India initiative.

Officials from both countries said the FTA will boost bilateral trade, create jobs, and expand market opportunities for businesses. They view the deal as a major step toward fostering innovation, investment, and long-term economic growth.

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