External Affairs Minister S. Jaishankar on Monday described the newly concluded India–New Zealand Free Trade Agreement (FTA) as a landmark development that will significantly boost trade, investment and economic cooperation between the two countries.
In a post on X, Jaishankar said the agreement marks a new phase in bilateral ties.
“A landmark in India-New Zealand relations. The India-NZ FTA, concluded in record time under the guidance of Prime Minister Narendra Modi and Prime Minister Christopher Luxon, places our partnership on an accelerated growth trajectory. It will boost trade, investment and economic collaboration across sectors,” he said.
Earlier in the day, Prime Minister Narendra Modi held a telephone conversation with New Zealand Prime Minister Christopher Luxon, during which the two leaders jointly announced the conclusion of the landmark FTA. Both leaders said the agreement would act as a catalyst for greater trade, investment, innovation and shared opportunities.
In a post on X, PM Modi said, “My friend Prime Minister Christopher Luxon and I had a very good conversation following the conclusion of the landmark India–New Zealand Free Trade Agreement. Concluded in just nine months, this historic milestone reflects strong political will and a shared ambition to deepen economic ties between our two countries.”
The leaders also welcomed progress in other areas of bilateral cooperation, including defence, sports, education and people-to-people ties.
Negotiations for the agreement were initiated during Luxon’s visit to India in March 2025. Both sides said the swift conclusion of the talks reflects their shared commitment to strengthening the partnership. The FTA is expected to deepen bilateral economic engagement, enhance market access, promote investment flows and strengthen strategic cooperation, while creating new opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth in both countries.
On the back of the agreement, the two leaders expressed confidence that bilateral trade could be doubled over the next five years. New Zealand has also committed to invest USD 20 billion in India over a 15-year period, broadly on the lines of the European Free Trade Association (EFTA) model.
Luxon said the agreement would deliver strong economic benefits for his country.
“I’ve just spoken with India’s Prime Minister Narendra Modi following the conclusion of the NZ–India Free Trade Agreement. 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 by USD 1.1 billion to USD 1.3 billion per year over the coming two decades,” he said in a post on X.
Luxon added that increased trade would translate into more jobs, higher wages and greater opportunities for New Zealanders. “India is one of the fastest-growing economies in the world, and this agreement gives Kiwi businesses access to 1.4 billion consumers. Our government is focused on fixing the basics and building the future, and trade deals like this will help grow our economy so all New Zealanders can get ahead,” he said.
The FTA significantly expands cooperation across goods, services, investment, mobility and trade facilitation, and is seen as a key step in strengthening the long-term India–New Zealand partnership.
(ANI)
