Prime Minister Narendra Modi on Monday spoke to the Prime Minister of New Zealand, Christopher Luxon, and sealed a Free Trade Agreement (FTA) between the two countries. The two leaders jointly announced the successful conclusion of the landmark deal, which was materialised in a record time of nine months.
Both world leaders expressed optimism about expanding economic and bilateral trade ties in the next five years, as well as attracting USD 20 billion in New Zealand investments into New Delhi over the coming 15 years. Meanwhile, the leaders welcomed the progress made in several areas of bilateral cooperation, including sports, education, and people-to-people ties.
New Zealand PM announces 95% tariff cut on Kiwi goods
In a post on X, Prime Minister Luxon shared the details about the key trade agreement, stating that tariffs have been removed on 95% of country’s exports to India. “I’ve just spoken with India’s Prime Minister Narendra Modi following the conclusion of the NZ-India Free Trade Agreement. The FTA reduces or removes tariffs on 95% of our exports to India. It’s forecast that NZ exports to India could increase $1.1B to $1.3B per year over the coming two decades,” Luxon said.
I’ve just spoken with India’s Prime Minister Narendra Modi following the conclusion of the NZ-India Free Trade Agreement.
---Advertisement---The FTA reduces or removes tariffs on 95% of our exports to India. It’s forecast that NZ exports to India could increase $1.1B to $1.3B per year over the… pic.twitter.com/FEat7BQWOI
— Christopher Luxon (@chrisluxonmp) December 22, 2025
What does it mean for trade and education? Student Visa perks & more
Under the Free Trade Agreement (FTA), there will be more jobs, ensuring higher wages for people in New Zealand. “Boosting trade means more Kiwi jobs, higher wages and more opportunities for hard working New Zealanders. The agreement builds on the strong friendship between our two countries. India is one of the fastest-growing economies in the world, and this gives Kiwi businesses access to 1.4 billion Indian consumers,” the New Zealand Prime Minister said.
The ambitious deal aims to enhance market access, promote investment flows, strengthen strategic cooperation between India and New Zealand, while generating new opportunities for innovators, entrepreneurs, farmers, MSMEs, students, and youth of both countries across various sectors.
