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PM Modi and New Zealand Prime Minister Christopher Luxon announced historic free trade agreement

By Samira Vishwas

Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon announced the successful conclusion of the historic, ambitious and mutually beneficial Free Trade Agreement (FTA) between India and New Zealand during a telephonic conversation on Monday (December 22). This agreement has been completed in just a record 9 months, which is being considered a major milestone in the direction of economic cooperation between the two countries.

A statement issued by the Prime Minister’s Office (PMO) said, “The completion of the FTA in a record time of 9 months after the talks started during Prime Minister Luxon’s visit to India in March 2025 reflects the shared ambition of both the countries and the strong political will to further deepen bilateral relations.”

The PMO further said, “This FTA will significantly strengthen bilateral economic cooperation, enhance market access, encourage investment flows, strengthen strategic cooperation between the two countries and open new opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth in various sectors.”

Both Prime Ministers expressed confidence that bilateral trade can be doubled in the next five years. Along with this, the possibility of investment of 20 billion US dollars from New Zealand in India in the next 15 years has also been expressed. The leaders also welcomed progress in other areas such as sports, education and people-to-people contacts and reiterated their commitment to further strengthen the India-New Zealand partnership.

It is noteworthy that in November 2025, India and New Zealand had successfully completed the fourth round of FTA negotiations in Auckland and Rotary, after which the agreement was finalized. This free trade agreement (FTA) is expected to make it easier for New Zealand companies to sell goods and services in India. India is the world’s most populous country and its economy is estimated to be worth approximately $7 trillion by 2030. Luxon said that under the agreement, duties on about 95% of New Zealand’s exports to India will be reduced or eliminated, and more than half of the products will become duty-free from the first day the agreement comes into force.

While sharing information on this agreement, Prime Minister Narendra Modi said, “An important moment for India-New Zealand relations, a strong boost to bilateral trade and investment!
My friend Prime Minister Christopher Luxon and I had a very productive conversation some time ago, following the conclusion of the India-New Zealand Free Trade Agreement. This historic agreement, concluded in just nine months, reflects the strong political will and shared ambition to deepen economic ties between our two countries.
“This free trade agreement ensures: better market access, wider flows of investment, numerous opportunities for innovators, entrepreneurs, farmers, small and medium enterprises, students and youth.”

Talking about economic data, bilateral merchandise trade between India and New Zealand reached US $ 1.3 billion in the financial year 2024-25, which has shown an increase of about 49 percent on a year-on-year basis. The proposed FTA is expected to open new opportunities in important sectors like agriculture, food processing, renewable energy, pharmaceuticals, education and services sector.

The Government believes that this agreement will not only accelerate trade and investment, but will also bring long-term benefits to businesses and consumers of both the countries, taking India-New Zealand relations to new heights.

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