India (Commonwealth Union)_ New Zealand Prime Minister Christopher Luxon has welcomed the newly signed Free Trade Agreement (FTA) with India, describing it as a major win for New Zealand’s economy and exporters. He said the deal, reached after months of sustained negotiations, has the potential to deliver significant long-term benefits across key sectors, including agriculture, manufacturing, and services. The agreement was finalized following five formal negotiation rounds, supported by multiple in-person and virtual meetings between officials from both countries. According to Luxon, the outcome reflects persistence, careful planning, and strong political commitment on both sides.
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In a social media post, the New Zealand Prime Minister highlighted that the FTA will reduce or eliminate tariffs on 95 percent of New Zealand’s exports to India. He said this change will make it easier for New Zealand businesses to compete in one of the world’s fastest-growing major markets. Luxon noted that promoting trade is a key part of his role as prime minister. He credited Trade Minister Todd McClay and the negotiating team for their efforts, saying the agreement builds on New Zealand’s track record of expanding trade through similar deals. Drawing on past experience, he said free trade agreements have consistently helped grow exports and strengthen the domestic economy, and this agreement with India could deliver especially strong results.
Trade already plays a major role in New Zealand’s economy, supporting around one in four jobs. Luxon said the new agreement will reinforce that contribution by helping farmers, growers, manufacturers, and exporters reach new customers overseas. He added that stronger trade links mean more investment at home, better job opportunities, and higher wages for New Zealanders over time. The announcement followed a phone conversation between Luxon and Indian Prime Minister Narendra Modi, during which both leaders jointly confirmed the conclusion of the FTA. They agreed that the deal would act as a catalyst for deeper cooperation in trade, investment, innovation, and people-to-people ties.
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Prime Minister Modi also welcomed the agreement, calling it a historic milestone in India–New Zealand relations. He said the deal was completed in just nine months, reflecting strong political will and a shared ambition to strengthen economic ties. Modi emphasized that the agreement opens the door to new opportunities for businesses and workers in both countries. Under the FTA, all goods exports between the two nations will attract zero duty once the agreement comes into force. India will see tariff elimination across more than 8,000 tariff lines, significantly improving access for Indian products in the New Zealand market. The agreement also creates fresh growth opportunities in sectors such as information technology, financial services, education, tourism, and the audio-visual industry. New Zealand has additionally committed to facilitating investments worth USD 20 billion into India over the next 15 years.
These investments are expected to support India’s manufacturing, infrastructure, services, and innovation sectors, aligning closely with the country’s Make in India initiative and contributing to job creation. The deal is being described as New Zealand’s most ambitious services offer in any FTA it has signed so far. India has secured access commitments across several high-value sectors, including IT and IT-enabled services, professional services, education, finance, tourism, construction, and other business services. Officials say this will open up new opportunities for Indian service providers and support high-skilled employment. A notable feature of the agreement is the creation of a new Temporary Employment Entry Visa pathway for Indian professionals. The scheme allows up to 5,000 visas to be available at any time, with stays of up to three years. The agreement covers an array of professions, including many healthcare professions, engineering professionals, education, technology specialists, and others such as yoga instructors, practitioners of AYUSH (Indian System of Medicine), Indian- and foreign-trained chefs, and qualified music teachers.
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Besides decreasing tariffs on items, the FTA strives to eliminate the many non-tariff barriers to market entry through enhanced collaborative efforts in the areas of regulatory cooperation, transparency, and procedures associated with customs and other areas. The FTA strives to turn tariff savings into actual market access by implementing enhanced sanitary, phytosanitary, and technical requirements. Furthermore, commercial ties between India and New Zealand have gradually strengthened. Bilateral goods trade totaled USD 1.3 billion in 2024-2025, with overall commerce in products and services expected to reach USD 2.4 billion in 2024. The services trade alone generated USD 1.24 billion, primarily from tourism, information technology, and business services. The new FTA is expected to provide a stable and predictable framework to unlock the full potential of this expanding relationship.
