New Zealand Prime Minister Christopher Luxon has highlighted the benefits of the newly signed India-New Zealand Free Trade Agreement (FTA), saying more than half of his country’s exports to India will become tariff-free from the very first day of the agreement.

Making the announcement on X, Luxon said the trade pact would create new opportunities for businesses and strengthen New Zealand’s access to one of the world’s fastest-growing economies.

“New Zealand businesses are set to boom with our India Trade Deal. 57% of everything we export to India will be tariff-free from day one,” he wrote.

New Zealand makes announcement ahead of PM Modi’s visit

Luxon’s remarks come a day before Prime Minister Narendra Modi begins his two-day state visit to New Zealand from July 10 to 11. The visit follows an invitation from the New Zealand Prime Minister and marks the first state visit by an Indian Prime Minister to the country in nearly four decades.

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Earlier, while announcing Modi’s visit, Luxon had said, “I’m delighted to announce Indian Prime Minister Narendra Modi will make his first official visit to New Zealand next week.”

He described India as one of the world’s largest and fastest-growing economies, underlining its growing importance for New Zealand’s future economic growth.

FTA expected to boost trade and jobs

Referring to the agreement signed in April, Luxon said the trade deal would strengthen economic ties between the two countries.

“We are taking the two countries’ relationship to the next level with our New Zealand-India Free Trade Agreement, signed in April, which will deliver more jobs, higher exports and stronger economic growth for New Zealand,” he said.

He also said the agreement would expand opportunities for New Zealand exporters by providing access to a market of around 1.4 billion people, “bringing more money into Kiwi communities, creating jobs and lifting wages.”

Prime Minister Narendra Modi and New Zealand PM Christopher Luxon arrive to pay obeisance at Gurdwara Rakab Ganj Sahib, in New Delhi | File image/ANI
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Focus on trade, investment and cooperation

The India-New Zealand FTA is aimed at expanding bilateral trade, encouraging investment and increasing cooperation across goods and services. Under the agreement, Indian exports will receive duty-free access to the New Zealand market.

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For India, the pact strengthens access to a high-income Pacific economy and supports its broader Indo-Pacific economic engagement. For New Zealand, it opens the door to one of the world’s fastest-growing major markets at a time of global trade uncertainty.

During his visit to Auckland, Prime Minister Modi is expected to hold bilateral talks with Christopher Luxon, with discussions likely to focus on trade, commerce and defence. He is also scheduled to meet leading business and sports personalities and interact with members of the Indian diaspora.

FAQs:

What did New Zealand PM Christopher Luxon announce?


He said 57% of New Zealand’s exports to India will be tariff-free from the first day of the trade agreement.

Why is PM Modi visiting New Zealand?


Modi is on a two-day state visit to hold talks on trade, commerce, defence and broader bilateral cooperation.