'India welcomes over $20 bn investment': PM Modi hails New Zealand FTA, says stage set to double the trade

Prime Minister Narendra Modi on Monday hailed the conclusion of the India–New Zealand Free Trade Agreement, calling it a landmark step that will deepen economic ties and unlock large-scale investment and trade opportunities between the two countries.

"An important moment for India-New Zealand relations, with a strong push to bilateral trade and investment! My friend PM Christopher Luxon and I had a very good conversation a short while ago following the conclusion of the landmark India-New Zealand Free Trade Agreement," the Prime Minister wrote on X. "Concluded in just nine months, this historic milestone reflects a strong political will and shared ambition to deepen economic ties between our two countries."

In a subsequent post, Modi said the agreement would significantly expand the economic partnership. "The India-NZ partnership is going to scale newer heights. The FTA sets the stage for doubling bilateral trade in the coming 5 years."

He further stated that India welcomes investment worth over $20 billion from New Zealand across diverse sectors. "Our talented youth, vibrant startup ecosystem and reform-driven economy offer a strong foundation for innovation, growth and long-term partnership. At the same time, we continue to strengthen cooperation in other areas like sports, education and cultural linkages."

New Zealand Prime Minister Christopher Luxon confirmed that negotiations on the free trade agreement had been concluded, saying the deal would expand access for New Zealand exporters to India. He said the agreement "reduces or removes tariffs on 95 per cent of our exports to India."

Luxon said New Zealand's exports to India are forecast to rise from $1.1 billion to $1.3 billion per year over the coming two decades. "The agreement builds on the strong friendship between our two countries. India is one of the fastest-growing economies in the world, and this gives Kiwi businesses access to 1.4 billion Indian consumers," he said.

India's Ministry of Commerce said the agreement is a "comprehensive, balanced and forward-looking Free Trade Agreement" and one of the fastest concluded by India. Under the pact, New Zealand will eliminate tariffs on 100% of its tariff lines, providing duty-free access for all Indian exports. This is expected to strengthen India's labour-intensive sectors, including textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles, directly supporting workers, artisans, women, youth and MSMEs and integrating them deeper into global value chains.

The agreement also delivers New Zealand's most ambitious services offer in any of its FTAs to date, with India securing commitments across high-value sectors such as IT and IT-enabled services, professional services, education, financial services, tourism, construction and other business services, opening new avenues for Indian service providers and high-skill employment.

New Zealand has committed to facilitate investments of $20 billion into India over the next fifteen years, supporting manufacturing, infrastructure, services, innovation and employment under India’s Make in India vision. Indian enterprises are also expected to benefit from greater access to New Zealand and wider Pacific Island markets, the ministry added. 

The pact is expected to boost pharmaceutical and medical device exports through faster regulatory access, including acceptance of GMP and GCP inspection reports from regulators such as the US FDA, EMA and UK MHRA, reducing compliance costs and speeding up approvals.

India–New Zealand economic engagement has gathered momentum in recent years. Bilateral merchandise trade reached $1.3 billion in 2024–25, while total trade in goods and services stood at approximately $2.4 billion, with services trade alone touching $1.24 billion, led by travel, IT and business services. The FTA aims to provide a stable and predictable framework to unlock the full potential of the relationship.