India and New Zealand announce successful FTA agreement
The announcement was made by Indian Prime Minister Narendra Modi after a telephone conversation with his New Zealand counterpart Christopher Luxon
India today announced the successful conclusion of an ambitious and mutually beneficial bilateral Free Trade Agreement (FTA) with New Zealand.
The announcement was made by Indian Prime Minister Narendra Modi after a telephone conversation with his New Zealand counterpart Christopher Luxon.
"The two leaders jointly announced the successful conclusion of the historic, ambitious and mutually beneficial India–New Zealand Free Trade Agreement,' an official statement in New Delhi said.
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Luxon said the FTA reduces or removes tariffs on 95% of New Zealand's exports to India.
This is the seventh FTA India signed in the last few years after FTAs with Oman, the UK, Australia, Japan, South Korea, the UAE and the four-nation European bloc European Free Trade Area (EFTA).
With negotiations for the FTA with New Zealand having been Initiated during Luxon's visit to India in March this year, the two Prime Ministers agreed that the conclusion of the FTA in a record time of nine months "reflects the shared ambition and political will to further deepen ties between the two countries," the statement said.
"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," it added.
Modi and Luxon expressed confidence in doubling bilateral trade over the next five years as well as an investment of $20 billion in India from New Zealand over the next 15 years.
Bilateral merchandise trade between India and New Zealand was pegged at $1.3 billion in 2024-25, marking a growth of nearly 49 per cent over the previous year.
India's key exportable goods to New Zealand include clothing, fabrics and home textiles, pharmaceuticals and medical supplies, refined petroleum products, agricultural machinery like tractors and irrigation equipment, automobiles, iron and steel, paper products, electronics, shrimps, diamonds and basmati rice.
New Zealand's major exports to India comprise agricultural products and minerals, including apples, kiwifruit, lamb and mutton, milk albumin, lactose syrup, coking coal, logs and sawn timber, wool and scrap metals.
