New Delhi, December 22, 2025— India and New Zealand on Monday formally announced the conclusion of a landmark Free Trade Agreement (FTA), marking a major step forward in bilateral economic and strategic relations. Prime Minister Narendra Modi and his New Zealand counterpart Christopher Luxon unveiled the agreement during a telephone conversation, underscoring the growing momentum in ties between the two countries.
Officials from both sides described the pact as historic, ambitious and mutually advantageous. The agreement was finalised in just nine months after negotiations were launched during Prime Minister Luxon’s visit to India in March 2025, reflecting strong political commitment and a shared vision to elevate the partnership to a new level.
According to an official statement, the FTA is expected to substantially deepen economic engagement by improving market access, encouraging investment flows and strengthening strategic cooperation across sectors. The deal is also expected to create fresh opportunities for innovators, entrepreneurs, farmers, micro, small and medium enterprises, students and youth in both countries.
Buoyed by what they termed a strong and credible foundation laid by the agreement, Prime Ministers Modi and Luxon expressed confidence that bilateral trade could be doubled within the next five years. New Zealand also projected potential investments of around USD 20 billion in India over the next 15 years, highlighting the long-term economic promise of the partnership.
Beyond trade and investment, the two leaders reviewed progress in other key areas of cooperation, including defence collaboration, sports, education and people-to-people exchanges. They reiterated their commitment to further strengthening bilateral ties, positioning the FTA as a catalyst for wider strategic and social engagement.
The leaders agreed to remain in close contact as the agreement moves towards implementation, with officials noting that the pact marks the beginning of a new chapter in India–New Zealand relations.
