India-New Zealand FTA: PM Modi, Luxon Aim To Double Bilateral Trade Over 5 Years | India News

NEW DELHI: Prime Minister Narendra Modi held a telephone conversation with New Zealand Prime Minister Christopher Luxon on Monday and the two leaders jointly announced the successful conclusion of the historic, ambitious and mutually beneficial India-New Zealand Free Trade Agreement (FTA). During the meeting, both leaders expressed confidence that bilateral trade will double in the next five years and $20 billion will be invested from New Zealand to India in the next 15 years.

According to the statement made by the Prime Minister’s Office (PMO), negotiations started in March this year and the two leaders completed the FTA in a record time of nine months, reflecting the common ambition and political will to further deepen ties between the two countries.

“The FTA will significantly deepen bilateral economic interaction, increase market access, stimulate investment flows, strengthen strategic cooperation between the two countries, and also open new opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth of both countries in various sectors,” the statement said.

The leaders also welcomed the progress made in other areas of bilateral cooperation such as sports, education and people-to-people relations and reiterated their commitment to further strengthen the India-New Zealand partnership.

This historic FTA eliminates and reduces tariffs on 95 per cent of New Zealand’s exports – among the highest of any Indian FTA – with almost 57 per cent duty-free from day one, rising to 82 per cent once fully implemented, with the remaining 13 per cent subject to sharp tariff cuts.

This puts New Zealand exporters on par with or better than our competitors in various sectors and opens the door to India’s rapidly expanding middle class, according to an official statement from New Zealand.

“India’s economy is expected to reach NZ$12 trillion by 2030. The India-New Zealand Free Trade Agreement unlocks huge potential for our world-class exporters to the world’s largest country and will significantly accelerate progress towards New Zealand’s ambitious target of doubling the value of exports within 10 years,” he added.