PM Modi, New Zealand PM Luxon Announce Landmark Free Trade Agreement Between Two Nations

Prime Minister Narendra Modi held a telephone conversation with the Prime Minister of New Zealand, Christopher Luxon, on Monday, during which the two leaders jointly announced the successful conclusion of the historic and mutually beneficial India-New Zealand Free Trade Agreement (FTA), a release stated.

The FTA, described as ambitious and landmark, was finalised just nine months after negotiations began during PM Luxon’s visit to India in March 2025.

Both leaders highlighted that the record-time conclusion reflects the shared ambition and political will to further deepen bilateral ties between the two countries.

According to the release, the FTA is expected to significantly deepen economic engagement, enhance market access, promote investment flows, strengthen strategic cooperation, and open new opportunities for innovators, entrepreneurs, farmers, MSMEs, students, and youth across multiple sectors.

During their conversation, the leaders expressed confidence that the agreement would help double bilateral trade over the next five years and facilitate an investment of USD 20 billion from New Zealand into India over the next 15 years.

Speaking on the broader partnership, the two leaders also welcomed progress in other areas of cooperation, including defence, sports, education, and people-to-people ties.

They reaffirmed their commitment to further strengthening the India-New Zealand partnership and agreed to remain in close contact to ensure the successful implementation of the agreement.

The FTA marks a major milestone in India-New Zealand relations, offering a strong and credible foundation for enhanced economic and strategic collaboration between the two countries.

Both leaders underscored that the agreement is poised to serve as a catalyst for greater trade, investment, innovation, and shared opportunities, benefiting citizens and businesses in both nations.

This is India’s seventh FTA in the last few years after Oman, the UK, the EFTA countries, the UAE, Australia and Mauritius.