New Zealand Prime Minister Christopher Luxon on Saturday welcomed the free trade agreement (FTA) with India, calling it a key pledge fulfilled by his government and a boost to jobs, incomes and exports.
“We said we’d secure a Free Trade Agreement with India in our first term, and we’ve delivered,” Luxon said, adding that the “landmark deal means more jobs, higher incomes and more exports by opening the door to 1.4 billion Indian consumers.” Posting on X, he summed it up as: “Fixing the Basics. Building the Future.”
The two countries concluded the long-awaited FTA earlier this week, wrapping up negotiations that began in March and marking a major step forward in bilateral ties. Under the pact, tariffs will be eliminated or reduced on 95% of New Zealand’s exports to India—among the highest coverage levels in any Indian FTA. Of these, 57% will become duty-free from day one, rising to 82% once the agreement is fully implemented, with the remaining 13% seeing substantial tariff cuts.
The India–New Zealand FTA was announced on Monday following a telephone conversation between Luxon and Indian Prime Minister Narendra Modi, with both leaders describing the pact as historic, ambitious and mutually beneficial. They said it would act as a catalyst for deeper trade, investment, innovation and shared opportunities.
Both sides also welcomed progress in other areas of cooperation, including defence, sports, education and people-to-people ties, and agreed to stay closely engaged as the partnership enters a new phase after the signing.
FTA negotiations were initiated during Luxon’s visit to India, and leaders on both sides noted that concluding talks in a record nine months reflected strong political will and a shared ambition to further strengthen bilateral relations. Praising the outcome, Modi said he and Luxon had a “very good conversation” following the conclusion of the landmark agreement, which is expected to deepen economic engagement and lay the groundwork for broader collaboration across sectors.
