New Zealand Prime Minister Christopher Luxon expressed optimism that a Free Trade Agreement (FTA) with India would lead to increased employment, exports, and higher incomes. The FTA, recently finalized between India and New Zealand, is seen as a significant economic and strategic achievement. Luxon emphasized the positive impact of the deal, stating that it would create more job opportunities, boost incomes, and facilitate exports to India’s vast consumer market.
Luxon, in a social media post, highlighted the successful conclusion of the FTA within nine months, fulfilling a key commitment. The agreement, aimed at enhancing economic ties between the two countries, is expected to benefit both nations by promoting trade and investment. Indian Prime Minister Narendra Modi also lauded the FTA as a historic milestone in bilateral relations, emphasizing its importance for boosting trade and investment between India and New Zealand.
Under the FTA, all Indian exports will enjoy duty-free access in New Zealand, accompanied by a $20 billion investment pledge over 15 years to strengthen economic and strategic cooperation. The agreement will particularly benefit India’s labor-intensive sectors such as textiles, apparel, leather, and automotive industries, providing a significant boost to Indian workers, artisans, women, youth, and MSMEs by integrating them into global value chains.
India, on the other hand, has secured commitments in key sectors like IT, professional services, education, and tourism, opening up new avenues for Indian service providers and creating opportunities for high-skilled employment. The FTA is expected to deepen economic cooperation and foster mutual growth between India and New Zealand, marking a new chapter in their trade relations.
