India New Zealand Free Trade Agreement: PM Luxon Says Deal Will Boost Jobs, Exports, and Incomes

New Delhi: A Free Trade Agreement (FTA) between India and New Zealand is expected to generate new employment opportunities, expand exports, and increase incomes, New Zealand Prime Minister Christopher Luxon said on Saturday, describing the pact as a major economic breakthrough for both countries.

The statement came as India and New Zealand formally concluded a comprehensive and long-awaited FTA, marking a significant milestone in bilateral economic and strategic relations. The agreement is being seen as one of the most important trade deals for New Zealand in recent years and a key step forward in strengthening ties with India.

“We said we would secure a Free Trade Agreement with India during our first term, and we have delivered on that promise,” Luxon said in a post on social media platform X.

Calling it a landmark achievement, Luxon said the agreement would lead to more jobs, higher incomes, and increased exports by unlocking access to India’s vast consumer base of 1.4 billion people. He also highlighted the speed of negotiations, noting that the deal was successfully concluded within just nine months after talks officially began on March 16.

“Fixing the Basics. Building the Future,” Luxon said, while welcoming the conclusion of the agreement and underlining its long-term economic significance.

India New Zealand Free Trade Agreement Marks Major Economic Breakthrough

Earlier in the day, Prime Minister Narendra Modi described the India–New Zealand FTA as a historic moment in bilateral relations, saying it would give a strong push to trade, investment, and economic collaboration between the two nations.

“An important moment for India–New Zealand relations, with a strong boost to bilateral trade and investment,” Modi wrote on X. He added that he had a productive conversation with Prime Minister Luxon shortly after the conclusion of the agreement, calling it a landmark step forward.

The agreement eliminates customs duties on 100 per cent of Indian exports to New Zealand, providing Indian businesses with significantly improved market access. It also includes an ambitious $20 billion investment commitment over the next 15 years, aimed at strengthening long-term economic and strategic cooperation between the two countries.

India New Zealand Free Trade Agreement Boosts Exports and Indian Workforce

According to India’s Commerce Ministry, the FTA substantially enhances market access for several of India’s labour-intensive sectors, including textiles, apparel, leather goods, footwear, marine products, gems and jewellery, handicrafts, engineering products, and automobiles.

The ministry said the agreement would directly benefit Indian workers, artisans, women entrepreneurs, youth, and micro, small and medium enterprises (MSMEs) by integrating them more deeply into global value chains. The duty-free access is expected to improve competitiveness and drive export growth across these sectors.

Officials added that the agreement reflects India’s broader strategy to promote inclusive growth by supporting employment-intensive industries and expanding opportunities for small businesses in international markets.

Services, Investment, and High-Skill Jobs Get a Major Push

In addition to goods trade, India has secured strong commitments from New Zealand across a wide range of high-value service sectors, opening up new avenues for Indian professionals and service providers.

The Commerce Ministry said the agreement covers sectors such as information technology (IT), IT-enabled services, professional services, education, financial services, tourism, construction, and other business services. These provisions are expected to generate high-skill employment opportunities and expand the global footprint of Indian service companies.

With the conclusion of the FTA, both countries aim to deepen economic integration, promote long-term investment, and build a more resilient and future-ready trade partnership, reinforcing their strategic cooperation in the Indo-Pacific region.