India, New Zealand Announce Successful Conclusion of Free Trade Agreement

Prime Minister Narendra Modi and New Zealand’s Prime Minister, Christopher Luxon, had a phone call where they jointly declared the successful completion of the India-New Zealand Free Trade Agreement. They aim to double bilateral trade in the next five years and see $20 billion in investments from New Zealand in India over the next 15 years.
Negotiations for the agreement began in March this year and were finalized in a record time of nine months, showcasing the shared determination to strengthen ties between the two countries. The Free Trade Agreement is expected to deepen economic engagement, boost market access, encourage investment flows, enhance strategic cooperation, and create new opportunities for various sectors, including innovators, entrepreneurs, farmers, MSMEs, students, and youth from both nations.
The agreement eliminates or reduces tariffs on 95% of New Zealand’s exports, with 57% becoming duty-free immediately and rising to 82% upon full implementation, while the remaining 13% will undergo significant tariff reductions. This move benefits New Zealand exporters by providing them with a competitive edge in various sectors and granting access to India’s expanding middle-class market.
New Zealand officials highlighted that the Indian economy is projected to reach NZ$12 trillion by 2030, emphasizing the vast potential for New Zealand exporters to access the world’s largest country through this Free Trade Agreement. This agreement is expected to accelerate progress towards New Zealand’s goal of doubling export value over the next decade.
The leaders also acknowledged progress in other areas of cooperation such as sports, education, and people-to-people ties, underscoring their commitment to further strengthening the partnership between India and New Zealand.