India-New Zealand Free Trade Agreement: A Landmark Deal Signed

"Just over a year ago, I met with Prime Minister Modi in India. We agreed then, that we'd launch negotiations on a free trade agreement. For decades, many people said it couldn't be done. But tonight, that deal gets signed," New Zealand Prime Minister Christopher Luxon posted on X on Sunday, setting the stage for a landmark India-New Zealand Free Trade Agreement to be signed on Monday, April 27.

"It means more jobs on farms and orchards, it means more money coming into local communities, and it means more opportunities for your family to get ahead," he said, highlighting the economic and social benefits for Kiwi communities.

The announcement was confirmed by Union Commerce and Industry Minister Piyush Goyal during his visit to Agra with New Zealand's Minister for Trade and Investment Todd McClay. Goyal said the agreement was finalised after years of discussions at the highest level, including between Prime Minister Narendra Modi and PM Luxon. "On the bilateral trade agreement between India and New Zealand... after many years of discussions... it is going to be signed tomorrow," he said.

The FTA is expected to significantly improve market access for Indian goods, with approximately 70% of exports to New Zealand entering duty-free. Goyal emphasised that the deal will open fresh export opportunities for traditional and MSME-driven sectors, particularly in leather, handloom and handicrafts. "We will get new opportunities for our Agra leather business and Uttar Pradesh handloom and handicrafts... to our one district one product... to our carpenters who make the goods to the handcarvers and many more opportunities," he noted.

Goyal added that the agreement would act as a catalyst for trade growth in the coming months. "In a few months, it will be a means of increasing trade between India and New Zealand," he said, underlining its role in deepening economic engagement and strengthening bilateral ties.

McClay, who joined Goyal in Agra for industry engagements, called the bilateral relationship the strongest he has ever known. "We, as a government of New Zealand, have said that we want to make our relationship with India and its government a strategic priority... We have a shared history, and we also know that we need to keep working on that," he told ANI. He expressed optimism about increased connectivity, saying direct flights between India and New Zealand could soon become a reality, along with greater tourism flows.

The signing comes after prolonged negotiations that many had considered unlikely given the historical complexities of a deal between the two economies. For India, the agreement expands export avenues for MSMEs and artisans, while for New Zealand, it provides a strategic gateway to one of the fastest-growing major economies globally.

Both sides see the FTA as a milestone that transforms a shared historical relationship into a robust, people-centred partnership, with the potential to unlock new avenues for farmers, skilled professionals, businesses and local communities across both countries.

- ANI