Union Home Minister Amit Shah on Monday said the India–New Zealand Free Trade Agreement (FTA) marks a new milestone in the government’s trade diplomacy and will open fresh avenues of growth and prosperity for both countries.
In a post on X, Shah said the agreement would bring in USD 20 billion in investment and create opportunities for Indian innovators, entrepreneurs, farmers, MSMEs, students and youth. He described the FTA as a reflection of the people-centric foreign policy pursued under the leadership of Prime Minister Narendra Modi.
Earlier in the day, Prime Minister Modi held a telephone conversation with Christopher Luxon, during which the two leaders jointly announced the landmark India–New Zealand Free Trade Agreement. Both sides said the pact would act as a catalyst for deeper trade, investment, innovation and shared opportunities.
According to official statements, the agreement is expected to significantly deepen bilateral economic engagement by enhancing market access, boosting investment flows and strengthening strategic cooperation across sectors. It will also expand opportunities for businesses, farmers, startups and service providers in both countries.
With the foundation provided by the FTA, the two leaders expressed confidence in doubling bilateral trade over the next five years. They also welcomed the prospect of USD 20 billion in investment from New Zealand into India over the next 15 years. Progress in other areas of cooperation, including sports, education and people-to-people ties, was also noted, with both sides reaffirming their commitment to further strengthening bilateral relations.
The agreement is expected to provide a major boost to India’s exports, as New Zealand will offer zero-duty market access on 100 per cent of its tariff lines covering all Indian exports from the date the FTA comes into force. Labour-intensive sectors are expected to be among the biggest beneficiaries.
With New Zealand eliminating tariffs that earlier went up to 10 per cent, Indian textile and clothing exporters will receive zero-duty access across 1,057 tariff lines. India’s textile and apparel exports stood at USD 36.9 billion in 2024–25, while exports to New Zealand reached USD 103 million, a figure expected to rise further given New Zealand’s annual global textile imports of nearly USD 1.9 billion.
Bilateral merchandise trade between India and New Zealand stood at USD 1.3 billion in 2024–25, registering a 49 per cent growth over the previous year. With zero-duty access, regulatory facilitation and services liberalisation, the FTA is expected to unlock the next phase of growth across multiple Indian export sectors and strengthen India’s economic footprint in Oceania and the wider Indo-Pacific region.
— ANI
