The North News
New Delhi, December 22
Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon have announced the successful conclusion of a landmark India–New Zealand Free Trade Agreement (FTA), marking a major step forward in bilateral relations. The announcement was made after the two leaders held a telephone conversation on Monday, jointly declaring the completion of what they described as a historic, ambitious and mutually beneficial agreement.
Negotiations for the FTA were initiated during Luxon’s visit to India in March 2025. Both leaders noted that concluding the agreement within a record nine months reflected the shared ambition and strong political will in New Delhi and Wellington to deepen ties.
According to an official statement, the FTA is expected to significantly expand bilateral economic engagement by improving market access, encouraging investment flows and strengthening strategic cooperation. It is also set to open new opportunities for innovators, entrepreneurs, farmers, MSMEs, students and young professionals in both countries across multiple sectors.
With the foundation provided by the agreement, the two leaders expressed confidence that bilateral trade could be doubled over the next five years. They also projected New Zealand investments of around $20 billion in India over the next 15 years.
Modi and Luxon welcomed progress in other areas of cooperation, including sports, education and people-to-people exchanges, and reaffirmed their commitment to further strengthening the India–New Zealand partnership. They agreed to remain in close contact to advance shared priorities.
