India and New Zealand have concluded a landmark Free Trade Agreement (FTA) in a record nine months. EAM S Jaishankar hailed the deal, which aims to double bilateral trade in five years and attract a $20 billion investment from New Zealand.
Jaishankar Hails 'Landmark' Agreement
External Affairs Minister S Jaishankar on Monday described the newly concluded India-New Zealand Free Trade Agreement (FTA) as a landmark step that will significantly boost trade, investment and economic collaboration between the two countries.
In a post on X, Jaishankar said the agreement marked a new phase in bilateral ties. "A landmark in India-New Zealand ties. The India-NZ FTA, concluded in record time under the guidance of PM Narendra Modi and PM Christopher Luxon, places our partnership on an accelerated growth trajectory. It will surely boost trade, investment and economic collaboration across sectors," he wrote. https://x.com/drsjaishankar/status/2003000011077136815?s=46
PMs Modi and Luxon Jointly Announce Historic Deal
Earlier in the day, Prime Minister Narendra Modi held a telephone conversation with the Prime Minister of New Zealand, Christopher Luxon, as the two leaders jointly announced a landmark India-New Zealand Free Trade Agreement.
The leaders agreed that the FTA would serve as a catalyst for greater trade, investment, innovation and shared opportunities between both countries. In an X post PM Modi wrote, "My friend PM Christopher Luxon and I had a very good conversation a short while ago following the conclusion of the landmark India-New Zealand Free Trade Agreement. Concluded in just nine months, this historic milestone reflects a strong political will and shared ambition to deepen economic ties between our two countries."
The leaders also welcomed progress in other areas of bilateral cooperation including defence, sports, education and people-to-people ties.
Key Objectives and Economic Targets
With negotiations having been Initiated during New Zealand PM Luxon's visit to India in March 2025, the two leaders agreed that the conclusion of the FTA in a record time of 9 months reflects the shared ambition and political will to further deepen ties between the two countries.
The FTA would significantly deepen bilateral economic engagement, enhance market access, promote investment flows, strengthen strategic cooperation between the two countries, and also open up new opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth of both countries across various sectors.
With the strong and credible foundation provided by the FTA, both leaders expressed confidence in doubling bilateral trade over the next five years as well as an investment of USD 20 billion in India from New Zealand over the next 15 years.
The leaders also welcomed the progress achieved in other areas of bilateral cooperation such as sports, education, and people-to-people ties, and reaffirmed their commitment towards further strengthening of the India-New Zealand partnership.
'More Kiwi Jobs, Higher Wages': PM Luxon on FTA Benefits
Christopher Luxon, said in a post on X, "I've just spoken with India's Prime Minister Narendra Modi following the conclusion of the NZ-India Free Trade Agreement. The FTA reduces or removes tariffs on 95% of our exports to India. It's forecast that NZ exports to India could increase $1.1B to $1.3B per year over the coming two decades. Boosting trade means more Kiwi jobs, higher wages and more opportunities for hard working New Zealanders.
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. Our Government is relentlessly focused on fixing the basics and building the future - with new trade deals like this helping to grow our economy so all Kiwis can get ahead."
Agreement Scope and Investment Commitment
The agreement will significantly deepen cooperation across services, mobility, goods, investment and trade facilitation.
As part of the deal, New Zealand has committed to invest USD 20 billion in India over a 15-year period, broadly on the lines of the European Free Trade Association (EFTA) model. (ANI)
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