In a landmark diplomatic and economic achievement, India and New Zealand have successfully concluded negotiations for a comprehensive Free Trade Agreement (FTA) in a record-breaking span of just nine months. Prime Minister Narendra Modi and his New Zealand counterpart, Prime Minister Christopher Luxon, jointly announced the culmination of talks, heralding a new era of enhanced partnership.
A Catalyst for Deepened Economic Ties
Both leaders emphasised that the newly minted India New Zealand FTA will act as a powerful catalyst, significantly boosting trade, investment, innovation, and shared opportunities between the two nations. An official statement outlined that the agreement is designed to deepen bilateral economic engagement substantially, improve market access for goods and services, and promote smoother investment flows.
The pact is expected to open a wealth of new prospects for innovators, entrepreneurs, farmers, Micro, Small and Medium Enterprises (MSMEs), students, and the youth across various sectors in both countries. It also aims to strengthen strategic cooperation, building a more resilient economic relationship.
Ambitious Targets: Doubling Trade and Major Investments
Bolstered by the strong foundation of the FTA, Prime Minister Modi and Prime Minister Luxon expressed strong confidence in achieving ambitious economic goals. The leaders are targeting to double the bilateral trade between India and New Zealand over the next five years.
Furthermore, the agreement sets the stage for a significant investment inflow from New Zealand into India. An investment target of $20 billion over the next 15 years has been established, which would substantially contribute to India's growth story and create numerous joint ventures and collaborations.
Strengthening Bonds Beyond Commerce
While the economic aspects are central, the two leaders also welcomed the positive strides made in other areas of bilateral cooperation. They noted progress in fields like sports, education, and strengthening people-to-people connections. Both sides reaffirmed their commitment to further solidifying the multifaceted India-New Zealand partnership, recognising that strong interpersonal and cultural ties form the bedrock of a lasting relationship.
Echoing the sentiment of a transformative deal, Union Home Minister Amit Shah, in a post on social media platform X, stated that the India–New Zealand FTA opens new gateways to prosperity. He described it as a textbook example of how a people-centric foreign policy under Prime Minister Modi's leadership is working to fulfil the aspirations of Indian citizens by securing lucrative opportunities for key segments of society.
