Historic deal sealed: India, New Zealand sign landmark Free Trade Agreement in record time

The agreement was announced following a telephonic conversation between Prime Minister Narendra Modi and his New Zealand counterpart Christopher Luxon.

In a social media post, Modi described the agreement as "an important moment" for bilateral ties "with a strong push to bilateral trade and investment!".

"Concluded in just nine months, this historic milestone reflects a strong political will and shared ambition to deepen economic ties between our two countries," the Prime Minister wrote on X.

Modi said the FTA ensures "enhanced market access, deeper investment flows, numerous opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth".

Stating that the FTA will remove tariffs on 95 per cent of New Zealand’s exports to India, Prime Minister Christopher Luxon said, "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.

"Our Government is relentlessly focused on fixing the basics and building the future - with new trade deals like this helping to grow our economy so all Kiwis can get ahead."

The agreement "will open doors for New Zealand farmers, growers, and businesses - boosting exports, creating jobs, and lifting incomes to help all Kiwis get ahead," Luxon said.

Negotiations for the FTA were initiated during Luxon’s visit to India in March 2025. Both leaders said the conclusion of the agreement in a record time of nine months reflects shared ambition and political will to further deepen ties between the two countries.

With the strong and credible foundation provided by the FTA, both leaders expressed confidence in doubling bilateral trade over the next five years, as well as attracting investments of USD 20 billion from New Zealand into India over the next 15 years.

The leaders also welcomed progress in other areas of bilateral cooperation such as sports, education and people-to-people ties, and reaffirmed their commitment to further strengthening the India–New Zealand partnership.