New Delhi, December 22 (Udaipur Kiran) – India and New Zealand announced the conclusion of Free Trade Agreement (FTA) negotiations on Monday. The agreement aims to enhance bilateral trade and investment in goods and services. New Zealand Prime Minister Christopher Luxon confirmed the completion of FTA talks with India. The negotiations began in May this year.
The Ministry of Commerce and Industry stated that India and New Zealand have reached a comprehensive, balanced, and forward-looking FTA, marking a significant economic and strategic milestone in India’s engagement with the Indo-Pacific region. The agreement is expected to be signed within three months. The ministry noted that the FTA aligns with the National Vision of Developed India 2047 and is one of the fastest free trade agreements completed by India with a developed country. The agreement focuses on boosting bilateral trade and investment.
According to the Prime Minister’s Office, the talks initiated during Prime Minister Luxon’s visit to India in March 2025 were completed within nine months, reflecting the shared political will and commitment to deepen bilateral relations. The FTA will facilitate increased trade and investment, strengthen market access, and give a new direction to strategic cooperation. It will also open new opportunities for investors, entrepreneurs, farmers, MSMEs, students, and youth of both countries.
Prime Minister Narendra Modi described the India-New Zealand FTA as a historic achievement in bilateral relations, stating that it will take the partnership to new heights. On X, he said, “The India-New Zealand partnership is set to reach new heights. The FTA paves the way to double trade between the two countries in the next five years. India welcomes investments worth over 20 billion USD from New Zealand across various sectors. Our talented youth, strong startup ecosystem, and reform-driven economy provide a solid foundation for innovation and long-term partnership. We will also continue to strengthen cooperation in sports, education, and cultural ties.”
New Zealand Prime Minister Luxon posted on X that the FTA negotiations with India have concluded. The agreement will reduce or eliminate tariffs on 95 percent of New Zealand products exported to India. He estimated that New Zealand’s exports to India could increase from 1.1 billion USD to 1.3 billion USD annually over the next two decades. Luxon said, “I have just spoken with Prime Minister Narendra Modi following the completion of the New Zealand-India FTA talks.”
Luxon added, “This agreement is based on the strong friendship between our countries. India is one of the fastest-growing economies globally, providing New Zealand businesses access to 1.4 billion consumers.”
Key highlights of the agreement include:
– Zero-tariff market access on 100% of India’s exports to New Zealand. India has offered tariff liberalization on 70% of categories covering 95% of bilateral trade.
– Enhanced competitiveness for India’s labor-intensive sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods, and automobiles.
– The fastest concluded FTA with a developed country, ensuring a strong finish to the year for Indian exports including textiles, pharmaceuticals, leather, engineering goods, and agricultural products.
– Dedicated quota of temporary work visas for 5,000 professionals and 1,000 work and holiday visas. New Zealand committed to boosting investments worth 20 billion USD in India over the next 15 years.
– Agricultural productivity partnerships via centres of excellence in apples, kiwifruit, and honey. Duty-free raw materials for India’s manufacturing sector including timber logs, coking coal, and metal scrap.
– Cooperation agreements in AYUSH, culture, fisheries, audiovisual tourism, forestry, horticulture, and traditional knowledge systems.
The FTA also includes provisions for regulatory cooperation to eliminate non-tariff barriers beyond tariff liberalization.
In the financial year 2024-25, bilateral trade between India and New Zealand was approximately 1.3 billion USD, with India’s exports valued at 711.1 million USD and imports at 587.1 million USD. New Zealand’s average import tariff stands at 2.3%, compared to India’s 17.8%. Additionally, 58.3% of New Zealand’s tariff lines are already duty-free. India’s exports to New Zealand cover a broad range of products, mainly fuels, textiles, and pharmaceuticals.
(Udaipur Kiran)
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
