India-New Zealand FTA: PM Luxon Calls It a "Once-in-a-Generation" Economic Opportunity

In a video address shared on the social media platform X on Wednesday, New Zealand Prime Minister Christopher Luxon highlighted the immense scale of the Indian market. "Well, look, you've probably heard about the Indian FTA getting signed in India over the weekend, and this is fantastic news because it's a once-in-a-generation opportunity for New Zealand. Why do I say that? Well, it's pretty simple. India is now the most populous country on planet earth," the Prime Minister said.

Elaborating on the demographic shift, Luxon noted that India's population of roughly 1.5 billion people is becoming increasingly affluent. "They have about one and a half billion people inside the country. They're increasingly getting wealthier, and as a result, they want to consume higher quality products and services from places like New Zealand. And, importantly also, it's going to become the world's third largest economy," he added.

The Prime Minister emphasised that the agreement allows New Zealand to integrate itself into India's rapid economic ascent. He stated, "So there's a huge opportunity for New Zealand to grow with India as India moves from low-income to middle-income, demanding more of New Zealand's products and services."

Addressing the specifics of the trade benefits, Luxon pointed out that the deal provides immediate relief from restrictive trade barriers. "Of about the 95 per cent of stuff that we export to India, the good news is that right from day one, 57 per cent is tariff-free, and it moves up over the course of the agreement. So we get more and more of our goods not having to deal with the extra costs," he said.

The reduction in tariffs is expected to significantly level the playing field for Kiwi exporters on the global stage. Luxon remarked, "It makes them much more competitive. It means that we can compete with products from all around the world in the Indian marketplace as it grows."

Complementing this perspective from New Delhi, Commerce and Industry Minister Piyush Goyal announced that the newly inked pact marks the seventh such agreement finalised during his tenure over the last three-and-a-half years. Goyal, alongside New Zealand's Trade and Investment Minister Todd McClay, signed the deal on Monday, which is slated to become operational by the end of this year.

Highlighting the rapid pace of India's trade diplomacy, Goyal revealed that the government is poised to secure further landmark deals with major Western powers. "With this India-New Zealand FTA, it is the seventh free trade agreement that I am signing in the last three and a half years. Two more to go very soon in the next few months with the European Union EU and the United States of America USA," Goyal stated.

The minister's remarks underscore a period of high activity for the government, which has successfully concluded partnerships with the UAE, Australia, the UK, and the EFTA bloc.

This momentum persists as an Indian delegation recently concluded a mission to Washington to finalise the inaugural phase of a bilateral trade deal with the US, focusing on market access and digital commerce following a framework established on 7 February.

- ANI