India, New Zealand announce conclusion of FTA negotiations
New Delhi
India and New Zealand on Monday announced the successful conclusion of negotiations for a Free Trade Agreement (FTA), describing it as historic, ambitious and mutually beneficial. Prime Minister Narendra Modi held a telephone conversation with his New Zealand counterpart Christopher Luxon, during which the two leaders confirmed that talks on the pact had been wrapped up.
In a video message, Luxon said the agreement would create major opportunities for New Zealand farmers, growers and businesses by expanding exports, generating jobs and boosting incomes. He added that New Zealand’s exports to India are projected to rise from about USD 1.1 billion to USD 1.3 billion annually over the next 20 years. Highlighting India’s scale, Luxon said the FTA would provide Kiwi businesses access to a fast-growing market of nearly 1.4 billion consumers.
According to official statements, the agreement is expected to be formally signed within the next three months and implemented sometime next year. As part of the pact, New Zealand has committed to facilitating investments worth USD 20 billion in India over the next 15 years.
India’s commerce ministry said the deal provides duty-free access for Indian goods, with New Zealand agreeing to eliminate tariffs on 100 per cent of its tariff lines. This is expected to significantly enhance the competitiveness of India’s labour-intensive sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles.
Highlights of FTA
1. Zero Duty market access on 100 per cent of India’s exports.
2. Launched on March 16th 2025, the fastest with a Developed Country FTA concludes the year on a high note for all Indian exports including textiles, pharmaceuticals, leather, Engineering Goods, Agricultural products
3. Dedicated quota of Temporary Employment Entry visa for 5,000 professionals and 1,000 Work and Holiday Visas.
4. New Zealand has committed to facilitate investments of USD 20 billion into India over the next fifteen years.
