‘Free trade’ agreement signed between India and New Zealand
India NZ FTA:One phone call and a new chapter was written in the relations between two countries. An important telephonic conversation between Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon was not just a formality, but it has brought a big good news for the businessmen, students and common people of India. Both the leaders have jointly announced a historic ‘Free Trade Agreement’ (FTA).
The journey of 9 months which changed the picture
Usually, it takes years to reach a free trade agreement between two countries, but India and New Zealand have done this in record time. This conversation started when PM Laxman visited India in March 2025. The surprising thing is that within just 9 months both the countries finalized it, showing their mutual understanding and political will.
What will be cheaper and whose business will increase?
Under this agreement, the tax (tariff) imposed on 95 percent of goods coming to India from New Zealand will either be abolished or significantly reduced. Not only this, there will be no duty on more than half of the products from the very first day of the agreement. This simply means that competition will increase in the market and quality goods will be easily available.
At the same time, if seen from India’s perspective, this is a golden opportunity for our exporters. The aim of this agreement is to double bilateral trade in the next five years. Apart from this, New Zealand has expressed confidence in investing about 20 billion US dollars (USD 20 Billion) in India in the next 15 years. This investment will not only strengthen the economy but will also create new employment opportunities. The New Zealand market is now standing with open arms for MSMEs, farmers and new entrepreneurs.
Partnership from studies to playground
This agreement is not limited to just money and trade. Both the Prime Ministers have emphasized that this deal will also open new doors in areas like education, sports and defence. For Indian students who dream of studying in New Zealand, things may get better in the future. Besides, ‘people-to-people’ contact between the two countries will also be promoted. This partnership has also brought new hopes for sports lovers, because both the countries have agreed to increase cooperation in the sports field also.
India’s tune is ringing in the world
This agreement is also very special from a different perspective. In the last few years, India has made aggressive and positive changes in its trade policy. This is India’s 7th largest free trade agreement after Oman, UK, EFTA countries, UAE, Australia and Mauritius.