‘Historic milestone’: Modi on FTA with NZ
New Delhi: Prime Minister Narendra Modi on Monday hailed the completion of India’s free trade agreement negotiations with New Zealand, calling the nine-month conclusion of talks a “historic milestone” that marks a major step forward in strengthening the countries’ economic partnership.
Modi spoke with his New Zealand counterpart Christopher Luxon following the conclusion of talks for the pact, which is designed to expand market access and stimulate investment flows, including a foreign direct investment commitment of $20 billion over 15 years. In a message on X, Modi said the agreement reflects “a strong political will and shared ambition to deepen economic ties between our two countries” and noted that it will create opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth.
The Ministry of External Affairs said the leaders jointly announced the “successful conclusion of the historic, ambitious and mutually beneficial” agreement. According to the ministry, the pact is expected to strengthen strategic cooperation, widen market access and open avenues for deeper economic engagement. It added that both leaders voiced confidence about doubling bilateral trade within five years alongside the $20 billion investment target from New Zealand over the next decade and a half.
The ministry also said Modi and Luxon welcomed progress in areas including sports, education and people-to-people exchanges, and reiterated their commitment to building a stronger partnership.
External Affairs Minister S Jaishankar called the conclusion of negotiations a “landmark” moment for the bilateral relationship. He said the agreement “places our partnership on an accelerated growth trajectory” and will support collaboration across multiple sectors.
Beyond tariff liberalisation, the pact contains provisions aimed at reducing non-tariff barriers through improved regulatory coordination and streamlined customs procedures as well as sanitary, phyto-sanitary and technical standards.
Luxon said the agreement will reduce or eliminate tariffs on “95 per cent of our exports to India”. He said forecasts show New Zealand exports to India could rise by $1.1 billion to $1.3 billion annually over the next 20 years. “Boosting trade means more Kiwi jobs, higher wages and more opportunities for hard-working New Zealanders,” he said, adding that the deal gives businesses access to a market of 1.4 billion consumers.
The announcement follows India’s signing of a separate free trade pact with Oman days earlier.
