Free Trade Deal: A comprehensive free trade agreement has been successfully inked between India and New Zealand, a move which is set to see trade double in the next five years and see Indian investments worth $15 billion in New Zealand in the next 15 years.
This comes after Indian Prime Minister Narendra Modi had a discussion with New Zealand Prime Minister Christopher Luxon on the matter.
India-New Zealand: Genesis of the Agreement
Talks regarding the trade agreement began during Luxon’s Indian visit in March, 2025. It has been observed that the agreement is an important move in the development of both countries, as it emphasizes the necessity of a sound partnership between the Indian and New Zealand governments with specific focus on market access and economic engagement.
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India-New Zealand: Economic Effects & Trading Outlook
The trade pact would result in a substantial increase in the trade of goods as well as services. In 2024, the trade between the two nations was at $2.07 billion, out of which Indian exports were valued at $1.1 billion.
However, with this free trade pact, Indian companies would be able to tap the huge market in New Zealand, which has 1.4 billion consumers, as 95 percent of their exports would be free from tariffs. For India, this pact would provide an entry point for investments in technology, manufacturing or services.
India-New Zealand: Opportunities for Stakeholders
The FTA is not only limited to traditional sectors but has something in it for innovators, entrepreneurs, farmers, MSME, students and youth in both countries.
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Though sectors such as agriculture and dairy products were specified as sensitive sectors, it was decided that both countries will not include these sectors in their main negotiations, thus paving the way forward in reaching a conclusion in this agreement.
India-New Zealand: Strategic Significance & Future Outlook
PM Modi termed the agreement with a historic milestone reached within nine months, quite a reflection of strong political will and shared ambition. Luxon applauded the transformative powers of the accord for businesses within New Zealand.
Just after the FTA between India and Oman, this shows that India is moving towards establishing strong trade partnerships across the world while advancing its strategic partnerships with its key partners.
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Disclaimer: The article is for informational purposes and does not constitute financial or investment advice; readers should consult experts before decisions.