ASIATODAY.ID, NEW DELHI – IIndia and New Zealand have concluded a landmark free trade agreement (FTA) aimed at significantly expanding economic cooperation and unlocking the full potential of bilateral trade between the two countries.
Trade between New Delhi and Wellington reached $2.4 billion in 2024, with services accounting for $1.24 billion, driven largely by travel, information technology, and business services, according to a statement from India’s Ministry of Commerce on Monday.
Indian Prime Minister Narendra Modi hailed the agreement as a strategic breakthrough.
“Prime Minister Christopher Luxon and I had a very good conversation following the conclusion of the landmark India–New Zealand Free Trade Agreement,” Modi wrote on X.
The deal was finalized in just nine months, a pace Modi said reflects strong political will and shared ambition to deepen economic ties. Formal negotiations began during Prime Minister Luxon’s visit to India in March.
As part of the agreement, New Zealand has committed to invest $20 billion in India over the next 15 years, targeting manufacturing, infrastructure, services, innovation, and job creation.
The pact also introduces new temporary work-entry visas for Indian professionals, allowing up to 5,000 individuals at any given time to work in New Zealand for stays of up to three years.
A formal signing of the agreement is expected within three months, according to The Economic Times.
The New Zealand pact marks India’s third free trade agreement this year, following deals with the United Kingdom in July and Oman last week, underscoring New Delhi’s accelerated push to expand its global trade footprint.
The development comes as India continues trade negotiations with the United States, amid lingering tensions after President Donald Trump imposed tariffs of up to 50% in August, including punitive measures linked to India’s purchases of Russian oil.
Trump has since threatened additional tariffs, accusing India of dumping rice into the US market.
New Delhi is also seeking preferential trade agreements with Mexico and several other countries and trading blocs, aiming to mitigate tariff risks and strengthen its position in an increasingly fragmented global economy. (RT)
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