India-New Zealand FTA: PM Modi says deal reflects deep trust, Luxon says it offers ‘unprecedented opportunities’

Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon welcomed the free trade agreement between the two countries. In a post on X, PM Modi said, "Today marks a landmark moment in the India-New Zealand partnership!"

"I am delighted that the India-New Zealand FTA signed today will add unprecedented momentum to our developmental partnership. It reflects the deep trust, shared values and ambition that bind our two nations," PM Modi said.

He added, "This agreement will greatly benefit our farmers, youth, women, MSMEs, artisans, startups, students and innovators. It will open new avenues for growth, create opportunities and deepen our synergy across sectors."

"The investment commitment of $20 billion by New Zealand will further strengthen our cooperation in agriculture, manufacturing, innovation and technology, paving the way for a more prosperous and dynamic future for both countries," PM Modi said.

PM Modi wrote this in response to Christopher Luxon's post lauding the signing of the FTA.

What did Christopher Luxon say?

Christopher Luxon wrote on X, “Today, we mark a historic milestone in the relationship between India and New Zealand: the signing of our Free Trade Agreement.”

He said that it was only 13 months ago that "I travelled to India to meet with Prime Minister Modi and launch Free Trade Agreement negotiations."

He called India "one of the world’s largest and fastest-growing economies," adding that its trade relationship has only begun to scratch the surface of its potential.

"Prime Minister Modi and I could see that an FTA would be a massive opportunity for both our two countries," Luxon said.

He recalled, "Since my visit last March, Ministers Piyush Goyal and Todd McClay, and their officials, have worked tirelessly to negotiate a deal."

"The outcome of that hard work is a deal that delivers for India and for New Zealand. My congratulations to Minister Goyal, Minister McClay and all the negotiators who made this possible," he said.

He added that for New Zealand, this FTA opens the door to one of the world’s most dynamic markets and creates unprecedented opportunities to trade, invest, innovate and connect.

"This deal will help diversify New Zealand’s export markets, support the goal of doubling the value of our exports over 10 years, and put New Zealand exporters on a more level playing field with competitors already enjoying preferential access in India," Luxon said.

"For India, this deal means growth, innovation and new opportunities. It gives Indian exporters tariff-free access to the New Zealand market from day one, and it gives Indian consumers improved access to our high-quality exports," Luxon said.

"It creates new ways for India to partner with New Zealand on agricultural productivity and benefit from New Zealand’s world-leading agri-tech and food-production expertise," he added.

The New Zealand PM said that at a time of global uncertainty, this FTA is a clear commitment by both sides to stable, predictable, and rules-based trade.

India-New Zealand story

Luxon said the India-New Zealand story is about more than trade. "New Zealand and India are building a relationship that is bigger, deeper and more exciting every year – across trade, investment, defence, sport, and innovation," he said.

He said New Zealand’s vibrant Indian diaspora is central to the strong relationship between our two countries. "In Prime Minister Modi’s words, the diaspora is a ‘living bridge’ between New Zealand and India," he added.

"The contribution of the Indian community to New Zealand is immense: in business, in science, in education, in health, in the arts, in sport, and in communities right across the country.

"While today is a big milestone, it is also just the beginning. We are excited about the next chapter in India-New Zealand relations," he added.

The newly signed India-New Zealand pact will come into force on a date agreed upon by both sides. Total bilateral trade in goods and services reached $2.4 billion in 2024.