ECONOMY
India, New Zealand seal FTA, look to double bilateral trade to $5 billion in five years
- IBJ Bureau
- Dec 23, 2025
India and New Zealand have concluded a landmark free trade agreement (FTA), a move expected to deepen economic ties and boost trade, investment and cooperation between the two countries significantly.
The agreement, described by both the sides as ambitious and mutually beneficial, is expected to enhance market access, promote investment flows, strengthen strategic cooperation and create new opportunities for businesses, farmers, MSMEs, innovators, students and the youth across sectors.
Negotiations for the FTA were initiated during New Zealand Prime Minister Christopher Luxon’s visit to India in March 2025. The deal was finalised in a record nine months, reflecting strong political will and shared ambition to expand bilateral engagement.
Building on the foundation of the agreement, both the countries have expressed confidence that bilateral trade in goods and services could double over the next five years to$5 billion. New Zealand is also expected to invest over $20 billion in India over the next 15 years.
Reacting to the development, Prime Minister Narendra Modi has said in a post on the X that the India-New Zealand partnership is set to scale new heights. He has added that the FTA “sets the stage for doubling bilateral trade in the coming five years” and that India welcomes investment worth over $20 billion from New Zealand across diverse sectors.
In a separate statement, New Zealand Prime Minister Christopher Luxon has said that the agreement reduces or removes tariffs on 95 per cent of New Zealand’s exports to India and is forecast to lift New Zealand’s exports by $1.1 billion to $1.3 billion per year over the next two decades.
According to the deal, all Indian goods will have duty-free access to New Zealand.
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