India, NZ aim to double bilateral trade in 5 years

India and New Zealand have concluded a Free Trade Agreement (FTA) between the two countries. Talks on a comprehensive FTA between India and New Zealand have been successfully completed. The announcement was made on Monday following a phone conversation between Indian Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon.

India has already signed FTAs with several countries. In recent years, it has entered into trade agreements with Oman, the UK, EFTA countries, the UAE, Australia, and Mauritius. The agreement with New Zealand is the seventh such pact signed by India. 

Government sources said that negotiations on the trade agreement were completed within nine months and that the deal reflects the shared ambition and strong political will of both countries to further strengthen bilateral relations. The two leaders have agreed on the FTA, the sources added.

The Free Trade Agreement is expected to significantly boost economic ties between the two nations. It will improve market access, encourage investment flows, strengthen strategic cooperation, and create new opportunities for innovators, entrepreneurs, farmers, MSMEs, students, and youth in both countries. Government sources said the leaders expressed confidence that bilateral trade would double over the next five years and that New Zealand investments in India could reach USD 20 billion over the next 15 years.

New Zealand Prime Minister Christopher Luxon announced on social media that tariffs on 95 percent of New Zealand’s exports to India would be reduced under the agreement. He said the FTA is expected to increase New Zealand’s exports to India by USD 1.1 to 1.3 billion over the next two decades. By boosting trade, the agreement will help create jobs, support higher wages, and open up more opportunities for hardworking New Zealanders, Luxon said.

Calling the deal a testament to the strong friendship between the two countries, Luxon noted that he had visited India in March this year and held discussions with Prime Minister Modi on trade agreements. After four rounds of negotiations, the Free Trade Agreement between India and New Zealand has now been finalised.