India, New Zealand PMs announce conclusion of Free Trade Agreement

INdia and young seeland on mon proclaimed the ratiocination of an ambitious and mutually beneficial free trade agreement (FTA), with Prime Minister Narendra Modi and his counterpart Christopher Luxon saying the deal is expected to double bilateral trade in five years and lead to investments of $20 billion in India over the next 15 years.The two leaders announced the conclusion of the trade deal – the second finalised by India this month after an agreement with Oman – during a telephone conversation. The FTA was concluded nine months after negotiations began during Luxon’s visit to India in March, and both leaders said this reflected the “shared ambition and political will to further deepen ties”.With the strong foundation provided by the FTA, Modi and Luxon “expressed confidence in doubling bilateral trade over the next five years as well as an investment of $20 billion in India from New Zealand over the next 15 years”, the external affairs ministry said in a readout.The FTA will significantly deepen bilateral economic engagement, enhance market access, promote investment flows and strengthen strategic cooperation between the two countries, the readout said.The trade deal will also open up new opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth of both countries across various sectors.India-New Zealand trade in goods and services was worth $2.07 billion in 2024, with Indian exports accounting for $1.1 billion. Agriculture and dairy were sensitive sectors in negotiations for the FTA and people familiar with the matter said both sides had agreed to keep sensitive issues out of the negotiations to speed up work on the trade deal.The FTA is the latest in a series of trade deals concluded by India, the most recent ones being a Comprehensive Economic Trade Agreement with the UK in July, which reduces tariffs on nearly 90% of goods traded by the two countries, and a Comprehensive Economic Partnership Agreement (CEPA) finalised with Oman on December 18 that allows duty-free access for almost all Indian goods in the West Asian country.India signed a trade deal with the European Free Trade Association, which includes Switzerland, Norway, Iceland, and Liechtenstein, in 2024, and signed an economic cooperation and trade agreement with Australia in 2022. It concluded another CEPA with the United Arab Emirates (UAE) in 2022. New Delhi is currently negotiating trade deals with the European Union (EU), which is expected to be concluded in January, and a bilateral trade deal with the US.Modi and Luxon welcomed progress achieved in other areas of bilateral cooperation, such as sports, education, and people-to-people ties, and reaffirmed their commitment towards strengthening the India-New Zealand partnership.