India-New Zealand FTA 2025: Prime Minister Narendra Modi and New Zealand PM Christopher Luxon announced the successful conclusion of the India-New Zealand Free Trade Agreement after a phone conversation. This agreement was completed in just 9 months.
India-New Zealand Trade Agreement Explained: A new and big turn has come in the relations between India and New Zealand. The successful conclusion of the India-New Zealand Free Trade Agreement (FTA) was officially announced after a phone conversation between Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon on Monday. Both countries have described it as a historic, ambitious and mutually beneficial agreement. The special thing is that this FTA was completed in just 9 months, whereas usually such agreements take years. Its talks started during PM Laxon’s visit to India in March 2025.
Why is this FTA special in record time?
Both Prime Ministers said that the completion of the agreement so soon is a sign that India and New Zealand want to take the economic partnership to new heights. This will strengthen not only trade but also investment, innovation and strategic cooperation. According to the government statement, this agreement will provide easy access to the market, open new avenues of investment, benefit MSMEs, startups, farmers and youth and increase strategic cooperation between the two countries.
Business will double in 5 years
Both the leaders expressed confidence that with the help of this FTA, bilateral trade can double in the next 5 years. Investment worth $20 billion will come to India from New Zealand in the next 15 years. This agreement will serve to link India’s rapidly growing economy and New Zealand’s strong agricultural and technology capabilities.
Tax reduced or eliminated on 95% exports
New Zealand PM Christopher Luxon said on X (formerly Twitter) that under this agreement, taxes on 95% of New Zealand exports to India will be reduced or completely eliminated. New Zealand’s exports to India may increase from $1.1 billion to $1.3 billion annually in the coming years. He said India is one of the fastest growing economies in the world and this agreement will facilitate New Zealand businesses’ access to 14 billion Indian consumers.
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Farmers, youth and MSME benefit
PM Luxon said in a video message that this FTA will open new markets for New Zealand’s farmers and growers, increase employment, and help in increasing the income of the common people. At the same time, this agreement for India will bring new opportunities for students, startups and MSMEs, and will increase cooperation in areas like education, sports and defence.
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India’s 7th biggest FTA
This agreement is India’s 7th major FTA in recent years. Earlier, India has signed free trade agreements with Oman, UK, EFTA countries, UAE, Australia and Mauritius. The two Prime Ministers said they would remain in constant touch to put the agreement on the ground. We will make this an agreement not just on paper but giving benefits on the ground.