Wellington

New Zealand Prime Minister Christopher Luxon on Tuesday welcomed the recently concluded Free Trade Agreement (FTA) with India, describing it as a highly beneficial pact that is expected to deliver major gains for New Zealand’s exporters and overall economy.

In a post on social media platform X, Luxon said the agreement will cut or remove tariffs on about 95 per cent of New Zealand’s exports to India, a move that would significantly benefit farmers, manufacturers and exporters.

“One of the most important responsibilities of my role is to champion New Zealand’s interests globally. We have just finalised an outstanding Free Trade Agreement with India, reflecting the dedication and perseverance of Todd ‘Trade’ McClay and our negotiating team,” Luxon said. He added that based on New Zealand’s experience with previous FTAs, the economic upside from this agreement is expected to be substantial.

One of the most important parts of my job is getting out and hustling for New Zealand on the world stage.

We’ve just concluded an excellent Free Trade Agreement with India - and it’s a credit to the hard work and persistence of Todd ‘Trade’ McClay @toddmcclaymp and our…

— Christopher Luxon (@chrisluxonmp) December 22, 2025

Highlighting the importance of trade to the national economy, the Prime Minister noted that international trade already supports one in four jobs in New Zealand. “This agreement further strengthens that foundation by enabling our farmers, growers, manufacturers and exporters to compete more effectively on the global stage. When New Zealand businesses succeed overseas, it translates into stronger growth at home—more jobs, increased investment and better wages for Kiwis,” he said.

The remarks came a day after Prime Minister Narendra Modi and Prime Minister Luxon held a telephonic conversation to formally announce the landmark India–New Zealand Free Trade Agreement. Both leaders agreed that the pact would act as a major driver of enhanced trade, investment, innovation and shared economic opportunities between the two countries.

In a post on X, Prime Minister Modi said the agreement, concluded within nine months, reflects strong political commitment and a shared vision to deepen bilateral economic ties. He described the FTA as a historic milestone in India–New Zealand relations.

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

The agreement provides for zero-duty access on 100 per cent of goods exports upon its implementation, elimination of tariffs across 8,284 tariff lines, and expanded market access for Indian products. It also opens new growth opportunities in sectors such as IT and IT-enabled services, finance, education, tourism and the audio-visual industry.

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Additionally, New Zealand has committed to facilitating investments worth USD 20 billion in India over the next 15 years, supporting manufacturing, infrastructure, services, innovation and job creation in line with India’s Make in India initiative.