India-New Zealand FTA: India and New Zealand have written a new chapter in trade relations. After a phone conversation between PM Modi and New Zealand Prime Minister Christopher Luxon on Monday, both the countries have announced a historic ‘Free Trade Agreement’ (FTA). Interestingly, this agreement was completed not like a marathon but like a sprint. It was completed in just 9 months of talks.
9 months of hard work paid off
Usually, it takes years to reach a Free Trade Agreement (FTA) between two countries, but this agreement between India and New Zealand has been completed in record time. Its foundation was laid in March 2025 when PM Lakson visited India. The will for trade between the two countries was so strong that negotiations were finalized within just 9 months.
What will be the direct benefit?
This agreement is going to bring huge benefits to the common citizens and businessmen of both the countries.
Goods will be cheaper: Under the agreement, tariffs on 95% of the goods coming from New Zealand to India have either been removed or significantly reduced.
Trade will double: Both countries aim to double mutual trade in the next 5 years.
Big investment: New Zealand will invest about $ 20 billion (about Rs 1.6 lakh crore) in India in the next 15 years.
Opportunities for farmers and youth: The agreement will open new opportunities for farmers, small industries (MSMEs), startups and students of both the countries.
Boom in exports: New Zealand estimates that its exports to India will increase from $1.1 billion to $1.3 billion annually over the next two decades.
Not only business, but also strength in relationships
During this, PM Modi and Christopher Luxon not only talked about business, but also discussed defence, sports, education and deepening mutual relations. Expressing happiness on social media platform ‘X’, PM Luxon said that India is one of the fastest growing economies in the world and this agreement will open the doors of 1.4 billion Indian customers for Kiwi businesses.
Another achievement in the list of India’s ‘FTA’
India has been rapidly increasing its economic partnership with the developed countries of the world for the last few years. This agreement with New Zealand is India’s recent seventh major free trade agreement. Earlier, India has also signed similar agreements with Oman, UK, EFTA countries, UAE, Australia and Mauritius.