FTA with India means more jobs & higher incomes, says New Zealand PM: 'Fixing basics, building future'

PM Modi with New Zealand counterpart Christopher Luxon during the latter's visit to New Delhi in March. (Courtesy: Reuters photo)

New Zealand Prime Minister Christopher Luxon hailed the 'landmark' Free Trade Agreement (FTA) with India, noting that it would boost employment, raise incomes, and expand export opportunities in the Indian market.

"We said we'd secure a Free Trade Agreement with India in our first term, and we've delivered. This landmark deal means more jobs, higher incomes and more exports by opening the door to 1.4 billion Indian consumers," he said in a post on X.

We said we’d secure a Free Trade Agreement with India in our first term, and we’ve delivered. This landmark deal means more jobs, higher incomes and more exports by opening the door to 1.4 billion Indian consumers. Fixing the Basics. Building the Future.

— Christopher Luxon (@chrisluxonmp) December 27, 2025

India and New Zealand concluded a comprehensive and long-awaited FTA, marking a major economic and strategic milestone in India's engagement with the Indo-Pacific region. The negotiations were formally launched on March 16, 2025 during the meeting between Minister of Commerce and Industry Piyush Goyal and Minister for Trade and Investment of New Zealand Todd McClay.

Referring to the successful trade agreement, Luxon said, "Fixing the Basics. Building the Future". India-New Zealand FTA stands out as one of India's fastest-concluded FTAs aligned with the national vision of Viksit Bharat 2047.

The FTA eliminates tariffs across all tariff lines, granting duty-free access for all Indian exports. This market access enhances the competitiveness of India's labour-intensive sectors including textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles, directly supporting Indian workers, artisans, women, youth and MSMEs and integrating them deeper into global value chains, according to the commerce ministry.

The FTA delivers New Zealand's best and most ambitious services offer in any of its FTAs to date. India has secured commitments across a wide range of high-value sectors including IT and IT-enabled services, professional services, education, financial services, tourism, construction and other business services, opening substantial new opportunities for Indian service suppliers and high-skill employment, the commerce ministry had said.

Earlier, Prime Minister Narendra Modi hailed the India-New Zealand FTA as a historic milestone, which is India’s first women-led FTA. He noted that almost the entire negotiating team comprised women.

"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," he wrote on X.