New Delhi: India and New Zealand have announced the successful conclusion of a landmark Free Trade Agreement following discussions between Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon. The agreement marks a significant step forward in bilateral relations and reflects the shared commitment of both nations to deepen economic and strategic cooperation.
The Free Trade Agreement was finalised just nine months after negotiations began, making it one of the fastest concluded trade deals for both countries. Talks were formally launched during Prime Minister Luxon’s visit to India in March 2025, and the swift outcome highlights strong political will and alignment of economic priorities on both sides.
The agreement is expected to substantially enhance economic engagement by improving market access, encouraging two way investment and strengthening cooperation across multiple sectors. It opens new opportunities for businesses, innovators, farmers, micro and small enterprises, students and young professionals, creating a broad based framework for inclusive growth.
Both leaders expressed confidence that the agreement will help double bilateral trade within the next five years. In addition, it is projected to facilitate investments worth USD 20 billion from New Zealand into India over the next 15 years, supporting infrastructure development, innovation and industrial expansion.
The partnership is not limited to trade alone. During their conversation, the two prime ministers welcomed progress in defence cooperation, sports collaboration, education exchanges and people to people ties. They reaffirmed their commitment to maintaining close engagement to ensure effective implementation of the agreement and to further strengthen the overall relationship.
A key feature of the agreement is the significant reduction or removal of tariffs on the vast majority of New Zealand exports to India. This is expected to improve competitiveness and expand access to India’s rapidly growing consumer market, creating long term benefits for exporters and investors.
The India New Zealand Free Trade Agreement represents a major milestone in India’s trade diplomacy and is the seventh such agreement concluded in recent years. It provides a strong foundation for sustained economic growth, innovation and shared prosperity for both nations.
Sorry, there was a YouTube error.
