Delhi: In a major diplomatic and economic milestone, India and New Zealand have successfully concluded a historic Free Trade Agreement (FTA), announced on Monday following a telephonic conversation between Prime Minister Narendra Modi and his New Zealand counterpart Christopher Luxon.
The leaders hailed the agreement as “ambitious, mutually beneficial, and record-breaking”, completing negotiations in just nine months since discussions began during PM Luxon’s visit to India in March 2025.
According to the Prime Minister’s Office (PMO), the FTA is set to significantly enhance bilateral economic engagement, improve market access, encourage investment flows, and strengthen strategic cooperation between the two countries. It is expected to create new opportunities for innovators, entrepreneurs, farmers, MSMEs, students, and youth across multiple sectors.
Both leaders expressed optimism that bilateral trade could double over the next five years, with New Zealand investing up to USD 20 billion in India over the next 15 years. They also welcomed progress in areas such as sports, education, and people-to-people ties, reaffirming their commitment to further strengthening the India-New Zealand partnership.
India and New Zealand had concluded the fourth round of FTA negotiations in November 2025 in Auckland and Rotorua. Bilateral merchandise trade between the countries reached USD 1.3 billion in FY 2024-25, a 49% year-on-year growth. The FTA is expected to unlock potential in sectors including agriculture, food processing, renewable energy, pharmaceuticals, education, and services, creating new avenues for businesses and consumers.
