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PM Modi, Luxon aim to double bilateral trade over five years
Both leaders expressed confidence in doubling bilateral trade over the next five years.
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IANS - Mon, 22, Dec 2025
- 02:48 EST
- 5
Prime Minister Narendra Modi with New Zealand Prime Minister Christopher Luxon during a joint press meet at Hyderabad House in New Delhi on Monday, March 17, 2025. / IANS
Prime Minister Narendra Modi held a telephone conversation with New Zealand Prime Minister Christopher Luxon on Dec. 22 as the two leaders jointly announced the successful conclusion of the historic, ambitious and mutually beneficial India-New Zealand Free Trade Agreement (FTA).
During the conversation, both leaders expressed confidence in doubling bilateral trade over the next five years, as well as securing $20 billion in investment in India from New Zealand over the next 15 years.
The negotiations began in March this year, and the two leaders concluded the FTA in a record nine months, reflecting the shared ambition and political will to further deepen ties between the two countries, according to a statement from the Prime Minister’s Office (PMO).
“The FTA would significantly deepen bilateral economic engagement, enhance market access, promote investment flows, strengthen strategic cooperation between the two countries, and also open up new opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth of both countries across various sectors,” the statement said.
The leaders also welcomed progress achieved 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.
This historic FTA eliminates and reduces tariffs on 95 per cent of New Zealand’s exports — among the highest of any Indian FTA — with nearly 57 per cent becoming duty-free from day one, rising to 82 per cent when fully implemented. The remaining 13 per cent will be subject to sharp tariff cuts.
It puts New Zealand exporters on an equal or better footing with competitors across a range of sectors and opens the door to India’s rapidly expanding middle class, according to an official statement from New Zealand.
“The Indian economy is forecast to grow to NZ$12 trillion by 2030. The India-NZ Free Trade Agreement unleashes huge potential for our world-class exporters to the world’s most populous country and will significantly accelerate progress toward New Zealand’s ambitious goal of doubling the value of exports over 10 years,” the statement added.
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