India, New Zealand announce conclusion of FTA negotiations

India and New Zealand successfully concluded negotiations for a comprehensive free trade agreement, Prime Ministers Narendra Modi and Christopher Luxon announced on Monday (December 22, 2025) following a phone call between the leaders.

This is India’s seventh FTA in the last few years after Oman, UK, EFTA countries, UAE, Australia and Mauritius.

Government sources said that the two leaders agreed that the conclusion of the FTA in “a record time of 9 months reflects the shared ambition and political will to further deepen ties between the two countries”.

“The FTA would significantly deepen bilateral economic engagement, enhance market access, promote investment flows, strengthen strategic cooperation between the two countries, and also open up new opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth of both countries across various sectors,” said the source.

Both leaders expressed confidence in doubling bilateral trade over the next five years as well as an investment of $20 billion in India from New Zealand over the next 15 years.

Tariffs reduced

In a statement posted on social media, Mr. Luxon revealed that the FTA reduces or removes tariffs on 95% of New Zealand exports to India. The agreement is projected to boost New Zealand’s exports to India by $1.1 billion to $1.3 billion annually over the next two decades.

“Boosting trade means more Kiwi jobs, higher wages and more opportunities for hard working New Zealanders,” Mr. Luxon said in his announcement. “The agreement builds on the strong friendship between our two countries.”

The negotiations began in March 2025 when Mr. Luxon visited India and met with Mr. Modi, and progressed through four rounds of talks.