India, New Zealand sign free trade deal to focus on innovation, investment
The agreement, described by both sides as ambitious and mutually beneficial, is expected to enhance market access, promote investment flows, strengthen strategic cooperation, and create new opportunities for businesses, farmers, MSMEs, innovators, students and youth across sectors.
India and New Zealand have concluded a landmark Free Trade Agreement (FTA), a move expected to significantly deepen economic ties and boost trade, investment, and cooperation between the two countries.
The agreement, described by both sides as ambitious and mutually beneficial, is expected to enhance market access, promote investment flows, strengthen strategic cooperation, and create new opportunities for businesses, farmers, MSMEs, innovators, students and youth across sectors.
Negotiations for the FTA were initiated during New Zealand Prime Minister Christopher Luxon’s visit to India in March 2025. The deal was finalised in a record nine months, reflecting strong political will and shared ambition to expand bilateral engagement.
Building on the foundation of the agreement, both countries have expressed confidence that bilateral trade could double over the next five years. New Zealand is also expected to invest over USD 20 billion in India over the next 15 years.
Reacting to the development, Prime Minister Narendra Modi said in a post on X that the India–New Zealand partnership is set to scale new heights. He said the FTA “sets the stage for doubling bilateral trade in the coming five years” and added that India welcomes investment worth over USD 20 billion from New Zealand across diverse sectors.
Modi said India’s talented youth, vibrant startup ecosystem, and reform-driven economy offer a strong foundation for innovation, growth, and long-term partnership. He also noted that cooperation between the two countries continues to strengthen in areas such as sports, education and cultural linkages.
Calling it an important moment for bilateral relations, Modi said the agreement gives a strong push to trade and investment ties. He added that he and Christopher Luxon had a “very good conversation” shortly after the conclusion of the FTA, and that the deal, concluded in just nine months, reflects strong political will and a shared ambition to deepen economic ties.
The Prime Minister said the FTA ensures enhanced market access, deeper investment flows, and creates numerous opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth.
In a separate statement, New Zealand Prime Minister Christopher Luxon said he had spoken with Modi following the conclusion of the NZ-India Free Trade Agreement and highlighted its economic impact for New Zealand.
Luxon said the agreement reduces or removes tariffs on 95% of New Zealand’s exports to India and is forecast to lift New Zealand exports by USD 1.1 billion to USD 1.3 billion per year over the next two decades. He said boosting trade would mean more jobs, higher wages and greater opportunities for New Zealanders.
Calling India one of the fastest-growing economies in the world, Luxon said the agreement gives New Zealand businesses access to a market of 1.4 billion consumers. He added that the deal builds on the strong friendship between the two countries and supports the government’s focus on growing the economy through new trade agreements.
Luxon said the FTA would open doors for New Zealand farmers, growers and businesses, boosting exports, creating jobs and lifting incomes, helping New Zealanders get ahead.
However, the agreement has also triggered political opposition within New Zealand. Winston Peters, leader of New Zealand First and New Zealand’s Minister of Foreign Affairs, said his party is opposed to the India–New Zealand Free Trade Agreement, calling it “neither free nor fair” and arguing that it gives too much away without securing sufficient benefits for New Zealanders.
Peters said New Zealand First had urged its coalition partner not to rush into what it described as a low-quality deal and to use the full parliamentary term to negotiate better outcomes. He said those concerns were ignored.
According to Peters, when Cabinet approval for the India deal was sought, New Zealand First exercised the “agree to disagree” provision under the coalition arrangement and has made it clear it would vote against enabling legislation when it is introduced in Parliament.
He raised particular concerns about the dairy sector, saying the FTA does not meaningfully reduce India’s tariff barriers on key New Zealand dairy products such as milk, cheese and butter, even as New Zealand opens its market to Indian goods. Peters said dairy exports account for around 30% of New Zealand’s total goods exports.
Peters also criticised concessions related to immigration and labour mobility, arguing that New Zealand has offered significantly greater access to its labour market than Australia or the UK did in their trade deals with India. He said this was unwise given current labour market conditions.
He further warned that provisions relating to work rights for Indian students and post-study employment could limit the ability of future governments to adjust immigration policy in response to changing economic conditions.
Despite opposing the deal, Peters said New Zealand First remains committed to strengthening the broader India–New Zealand relationship and continues to engage with India at the diplomatic level.
India and New Zealand have concluded a landmark Free Trade Agreement (FTA), a move expected to significantly deepen economic ties and boost trade, investment, and cooperation between the two countries.
The agreement, described by both sides as ambitious and mutually beneficial, is expected to enhance market access, promote investment flows, strengthen strategic cooperation, and create new opportunities for businesses, farmers, MSMEs, innovators, students and youth across sectors.
Negotiations for the FTA were initiated during New Zealand Prime Minister Christopher Luxon’s visit to India in March 2025. The deal was finalised in a record nine months, reflecting strong political will and shared ambition to expand bilateral engagement.
Building on the foundation of the agreement, both countries have expressed confidence that bilateral trade could double over the next five years. New Zealand is also expected to invest over USD 20 billion in India over the next 15 years.
Reacting to the development, Prime Minister Narendra Modi said in a post on X that the India–New Zealand partnership is set to scale new heights. He said the FTA “sets the stage for doubling bilateral trade in the coming five years” and added that India welcomes investment worth over USD 20 billion from New Zealand across diverse sectors.
Modi said India’s talented youth, vibrant startup ecosystem, and reform-driven economy offer a strong foundation for innovation, growth, and long-term partnership. He also noted that cooperation between the two countries continues to strengthen in areas such as sports, education and cultural linkages.
Calling it an important moment for bilateral relations, Modi said the agreement gives a strong push to trade and investment ties. He added that he and Christopher Luxon had a “very good conversation” shortly after the conclusion of the FTA, and that the deal, concluded in just nine months, reflects strong political will and a shared ambition to deepen economic ties.
The Prime Minister said the FTA ensures enhanced market access, deeper investment flows, and creates numerous opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth.
In a separate statement, New Zealand Prime Minister Christopher Luxon said he had spoken with Modi following the conclusion of the NZ-India Free Trade Agreement and highlighted its economic impact for New Zealand.
Luxon said the agreement reduces or removes tariffs on 95% of New Zealand’s exports to India and is forecast to lift New Zealand exports by USD 1.1 billion to USD 1.3 billion per year over the next two decades. He said boosting trade would mean more jobs, higher wages and greater opportunities for New Zealanders.
Calling India one of the fastest-growing economies in the world, Luxon said the agreement gives New Zealand businesses access to a market of 1.4 billion consumers. He added that the deal builds on the strong friendship between the two countries and supports the government’s focus on growing the economy through new trade agreements.
Luxon said the FTA would open doors for New Zealand farmers, growers and businesses, boosting exports, creating jobs and lifting incomes, helping New Zealanders get ahead.
However, the agreement has also triggered political opposition within New Zealand. Winston Peters, leader of New Zealand First and New Zealand’s Minister of Foreign Affairs, said his party is opposed to the India–New Zealand Free Trade Agreement, calling it “neither free nor fair” and arguing that it gives too much away without securing sufficient benefits for New Zealanders.
Peters said New Zealand First had urged its coalition partner not to rush into what it described as a low-quality deal and to use the full parliamentary term to negotiate better outcomes. He said those concerns were ignored.
According to Peters, when Cabinet approval for the India deal was sought, New Zealand First exercised the “agree to disagree” provision under the coalition arrangement and has made it clear it would vote against enabling legislation when it is introduced in Parliament.
He raised particular concerns about the dairy sector, saying the FTA does not meaningfully reduce India’s tariff barriers on key New Zealand dairy products such as milk, cheese and butter, even as New Zealand opens its market to Indian goods. Peters said dairy exports account for around 30% of New Zealand’s total goods exports.
Peters also criticised concessions related to immigration and labour mobility, arguing that New Zealand has offered significantly greater access to its labour market than Australia or the UK did in their trade deals with India. He said this was unwise given current labour market conditions.
He further warned that provisions relating to work rights for Indian students and post-study employment could limit the ability of future governments to adjust immigration policy in response to changing economic conditions.
Despite opposing the deal, Peters said New Zealand First remains committed to strengthening the broader India–New Zealand relationship and continues to engage with India at the diplomatic level.