Prime Minister Narendra Modi with New Zealand PM Christopher Luxon
Credit: PTI File Photo
Prime Minister Narendra Modi on Monday held telephone conversation with Christopher Luxon, the Prime Minister of New Zealand. ANI reported that the two leaders announced the successful conclusion of the historic, ambitious and mutually beneficial India–New Zealand Free Trade Agreement (FTA).
"We’ve concluded a Free Trade Agreement with India. This will open doors for New Zealand farmers, growers, and businesses - boosting exports, creating jobs, and lifting incomes to help all Kiwis get ahead," Christopher Luxon said in a video message.
It's forecast that New Zealand exports to India could increase from USD 1.1 billion to $1.3 billion per year over the coming two decades, Luxon said in a social media post.
Under the pact, which is likely to be signed in the next three months and implemented next year, New Zealand has committed to facilitating investments of $20 billion into India over the next 15 years.
"Elimination of tariffs on 100 per cent of its tariff lines provides duty-free access for all Indian exports," the commerce ministry said.
This market access enhances the competitiveness of India's labour-intensive sectors, including textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles, it said.
It also said that India has secured commitments across a wide range of high-value sectors, including IT and IT-enabled services, professional services, education, financial services, tourism, construction and other business services, opening substantial new opportunities for Indian service suppliers and high-skill employment.
"I've just spoken with India's Prime Minister Narendra Modi following the conclusion of the NZ-India Free Trade Agreement.
"The agreement builds on the strong friendship between our two countries. India is one of the fastest-growing economies in the world, and this gives Kiwi businesses access to 1.4 billion Indian consumers," Luxon said.
Highlights of India-New Zealand free trade agreement
The pact is likely to be signed in three months and it is expected to be implemented next year.
Zero Duty market access on 100 per cent of India’s exports. India has offered tariff liberalisation in 70 per cent lines covering 95 per cent of New Zealand India Bilateral trade.
This market access enhances the competitiveness of India’s labour-intensive sectors including textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles.
Launched on March 16th 2025, the fastest with a Developed Country FTA concludes the year on a high note for all Indian exports including textiles, pharmaceuticals, leather, Engineering Goods, Agricultural products
Dedicated quota of Temporary Employment Entry visa for 5,000 professionals and 1,000 Work and Holiday Visas.
New Zealand has committed to facilitate investments of USD 20 billion into India over the next fifteen years.
Establishment of Agricultural Productivity Partnerships through Centres of Excellence by New Zealand for Apples, Kiwifruit, and Honey to boost productivity.
Duty free inputs for India's Manufacturing Sector: Wooden logs, coking coal, waste and scraps of metals.
Cooperation has been agreed in AYUSH, culture, fisheries, audio visual tourism, forestry, horticulture and traditional knowledge systems.
Apart from tariff liberalisation, the FTA includes provisions to address non-tariff barriers through enhanced regulatory cooperation.
Bilateral merchandise trade reached $1.3 billion in 2024–25, while total trade in goods and services stood at approximately $2.4 billion in 2024, with services trade alone reaching $1.24 billion.
With agency inputs