In a significant boost to economic ties, India and New Zealand have officially announced the conclusion of a landmark Free Trade Agreement (FTA). The breakthrough came following a telephonic conversation between Prime Minister Narendra Modi and his New Zealand counterpart, Christopher Luxon, on Monday, December 22, 2025.
A Historic Agreement Forged in Record Time
Terming it an "important moment" for bilateral relations, Prime Minister Modi highlighted that the pact was concluded in a remarkably short span of just nine months. The negotiations, which began during Luxon's visit to India in March 2025, culminated in what both leaders see as a testament to their shared political resolve.
"Concluded in just nine months, this historic milestone reflects a strong political will and shared ambition to deepen economic ties between our two countries," PM Modi stated in a post on social media platform X. He expressed confidence that the India-NZ partnership is going to scale newer heights with this foundation.
Ambitious Targets for Trade and Investment
The core of the agreement revolves around concrete and ambitious economic goals. During their call, the two Prime Ministers expressed strong confidence in doubling the bilateral trade between India and New Zealand over the next five years.
Furthermore, in a major commitment, the leaders outlined an investment target of $20 billion from New Zealand into India over the next 15 years. This substantial capital inflow is expected to energize multiple sectors of the Indian economy.
Wide-Ranging Benefits Across Sectors
According to a statement from India's Ministry of External Affairs (MEA), the FTA is designed to deliver broad-based benefits. It is poised to:
- Significantly deepen bilateral economic engagement.
- Enhance market access for goods and services.
- Promote greater two-way investment flows.
- Strengthen strategic cooperation between the nations.
The MEA emphasized that the agreement will open up new opportunities for innovators, entrepreneurs, farmers, and MSMEs (Micro, Small and Medium Enterprises) in both countries. Students and youth are also expected to gain from enhanced people-to-people and educational exchanges.
Beyond the economic sphere, the leaders also welcomed progress in other areas of cooperation, including sports and education. They reaffirmed their commitment to further strengthening the comprehensive India-New Zealand partnership, setting the stage for a new chapter in their diplomatic and economic relationship.
