India–New Zealand FTA finalised; trade to double,$20 bn investment

India and New Zealand on Monday finalised a Free Trade Agreement (FTA), bringing to a close negotiations that began in March this year. The agreement was announced following a telephone conversation between Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon.During the call, the two leaders described the India–New Zealand Free Trade Agreement as historic, ambitious and mutually beneficial, noting that it would act as a catalyst for deeper trade, investment, innovation and shared opportunities between the two countries. They also welcomed progress across other areas of bilateral cooperation, including defence, sports, education and people-to-people ties.Negotiations for the FTA were initiated during Luxon’s visit to India. The leaders said the successful conclusion of the agreement within a record nine months reflected strong political will and a shared ambition to further strengthen bilateral ties.
Hailing the deal, Prime Minister Modi said, “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.”

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.…

— Narendra Modi (@narendramodi) December 22, 2025

Luxon also took to X, saying, “I’ve just spoken with India’s Prime Minister Narendra Modi following the conclusion of the NZ–India Free Trade Agreement. Boosting trade means more Kiwi jobs, higher wages and more opportunities for hard working New Zealanders. The agreement builds on the strong friendship between our two countries.”PM further wrote, “India is one of the fastest-growing economies in the world, and this gives Kiwi businesses access to 1.4 billion Indian consumers. Our Government is relentlessly focused on fixing the basics and building the future with new trade deals like this helping to grow our economy so all Kiwis can get ahead.”

NEWS: We’ve concluded a Free Trade Agreement with India. This will open doors for New Zealand farmers, growers, and businesses - boosting exports, creating jobs, and lifting incomes to help all Kiwis get ahead. pic.twitter.com/MZZqYkXs0I

— Christopher Luxon (@chrisluxonmp) December 22, 2025

India–New Zealand Free Trade Agreement
The FTA is expected to significantly deepen economic engagement, improve market access, boost investment flows and strengthen strategic cooperation, while opening up new opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth in both countries across multiple sectors. Both leaders expressed confidence that bilateral trade could double over the next five years.Under the agreement, India is expected to receive investments worth $20 billion from New Zealand over the next 15 years.
Key sectors
A major highlight of the agreement is its focus on services and mobility. India has secured market access in New Zealand across 118 services sectors and sub-sectors, along with Most Favoured Nation (MFN) treatment in 139 services sectors, strengthening opportunities for Indian professionals and service providers.
Healthcare
An annex on health and traditional medicine services has been included to facilitate trade in health-related and traditional medicine services. This marks the first time New Zealand has signed such an annex with any country.
Tariffs
Under the agreement, tariffs will be eliminated or reduced on 95% of New Zealand’s exports to India, one of the highest coverage levels achieved under any Indian FTA. Meanwhile, 57% of exports to New Zealand will be duty-free from day one, rising to 82% once the agreement is fully implemented, with the remaining 13% subject to significant tariff reductions.The two leaders agreed to remain in close touch as the India–New Zealand partnership enters a new phase following the signing of the agreement.