India and New Zealand have finalised a free trade agreement, New Zealand said on Monday, making it easier for its exporters to reach the world’s biggest population and an economy forecast to be worth NZ$12 trillion ($7 trillion) by 2030.
The agreement cuts or reduces tariffs on 95% of New Zealand’s exports to India with more than half of products to be duty free on day one of the pact, improving access to India’s rapidly expanding middle class, the New Zealand government said.
Prime Minister Narendra Modi on Monday held a telephone conversation with the Prime Minister of New Zealand, The Rt. Hon. Christopher Luxon today. The two leaders jointly announced the successful conclusion of the historic, ambitious and mutually beneficial India–New Zealand Free Trade Agreement (FTA).
With negotiations having been Initiated during 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.
Both the leaders agreed to remain in touch.
Here are the five main highlights from the FTA between India and New Zealand:
Commerce and Industry Minister Piyush Goyal, described the FTA as one that “puts people first”. He stated, “Today this Free Trade Agreement is about building trade around people and launching opportunities, for our farmers, for our entrepreneurs, for our students, for our Women and for our innovators.”
