New Zealand Prime Minister Christopher Luxon on Saturday welcomed the free trade agreement with India, saying the deal fulfills an important promise made by his government. “We said we would conclude a free trade agreement with India in our first term and we delivered.” He further added that this “landmark deal means more jobs, higher incomes and more exports by opening the door to 1.4 billion Indian consumers.”” “Clarify the basics. Shape the future,” he wrote on X. The two nations had reached a long-awaited free trade agreement earlier this week, concluding negotiations that began in March this year and marking a significant milestone in bilateral relations.Under the agreement, tariffs will be eliminated or reduced on 95% of New Zealand’s exports to India, representing one of the highest levels of coverage achieved under an Indian free trade agreement. Of these, 57% of exports will be duty-free from day one, increasing to 82% once the agreement is fully implemented, while the remaining 13% will be subject to significant tariff reductions.The free trade agreement between India and New Zealand was announced on Monday following a telephone conversation between them PM Modi and Luxon, where both leaders described the pact as historic, ambitious and mutually beneficial. They said the agreement will act as a catalyst for deeper trade, investment, innovation and shared opportunities between the two countries.The leaders also welcomed progress in other areas of cooperation, including defense, sports, education and people-to-people relations, and agreed to remain in touch as the partnership enters a new phase following the signing of the agreement.Negotiations on the free trade agreement began during Luxon’s visit to India. Both sides noted that the successful conclusion of the talks within a record nine months reflected strong political will and a shared ambition to further strengthen bilateral relations.Welcoming the deal, Prime Minister Modi said, “My friend Prime Minister Christopher Luxon and I had a very good conversation recently after the conclusion of the landmark free trade agreement between India and New Zealand.”Both sides said the agreement would strengthen economic engagement while laying the foundation for closer cooperation across a range of sectors.
