New Zealand Prime Minister Christopher Luxon took to X on Monday to announce the implementation of the historic Free Trade Agreement (FTA) between New Zealand and India.
“As of today, our historic Free Trade Agreement with India is in effect,” PM Christopher Luxon posted on X.
‘Big day for Kiwi exporters’
Luxon said the deal, reached after working closely with Prime Minister Narendra Modi, will help grow both economies and boost Kiwi communities.
“From today, Kiwi businesses can reach over a billion more customers with significantly reduced tariffs,” the New Zealand Prime Minister said.
“That means it’s easier for Kiwi businesses to sell more, hire more staff, invest in machinery and expand, creating more jobs and higher wages for Kiwis,” he added.
“That’s more money flowing into Kiwi communities. That’s why National has been hustling on the world stage, getting trade deals done,” Luxon said.
In another post on X, Luxon hailed it as a “big day for Kiwi exporters” and said that “our Free Trade Agreement with India is now in force.”
“That means goods leaving here at the Ports of Auckland can reach one of the world’s fastest-growing economies with lower tariffs. More orders, more money flowing back into Kiwi communities, more jobs and higher wages for Kiwis,” Luxon’ post read.
What’s in for India under the New Zealand FTA?
The agreement opens opportunities across trade, investment, education and employment, including new pathways for MSMEs, pharmaceuticals, students and skilled professionals.
Under the India–New Zealand FTA, 100% of Indian exports are set to receive duty-free access to New Zealand from the Entry into Force.
The agreement also delivers New Zealand’s best-ever services offer to India and facilitates $20 billion in investment, PIB said.
It added that from textiles and leather to agriculture, pharmaceuticals and MSMEs, the India–New Zealand FTA “strengthens economic cooperation while safeguarding India’s dairy and agricultural interests, creating new opportunities for businesses, farmers, professionals and exporters.”
India–New Zealand FTA: Big takeaways you need to know
1. The India–New Zealand FTA provides duty-free access for 100% of Indian exports to New Zealand. From textiles, leather and footwear to pharmaceuticals and engineering goods, the agreement offers better market access and greater opportunities for job-creating industries.
2. The India–New Zealand FTA brings a $20 billion investment commitment from New Zealand over 15 years. With both countries aiming to double bilateral trade to $5 billion in 5 years, the agreement strengthens economic ties and creates more business opportunities.
3. It opens greater opportunities for MSMEs and women-led enterprises through zero-duty market access. While helping Indian businesses reach New Zealand, the agreement keeps sensitive sectors like dairy and select agricultural products protected.
4. The India–New Zealand FTA opens new avenues for Indian pharmaceuticals through faster approvals and fewer duplicate compliance requirements. For the first time, New Zealand has also facilitated trade in Ayurveda, yoga and other traditional medicine services with India.
5. The India–New Zealand FTA creates opportunities for Indian students and skilled professionals. Eligible STEM graduates can stay for up to three years after graduation, while PhD graduates can stay for up to four years, subject to visa conditions. A new pathway also covers 5,000 skilled occupations.
6. The India–New Zealand FTA introduces a working holiday pathway for young Indians, allowing up to 1,000 eligible applicants annually to access multiple-entry visas. With permitted stays of up to 12 months, subject to eligibility conditions, the agreement creates opportunities to work and explore New Zealand.
About the Author
Akriti Anand
Akriti Anand is a Deputy Chief Content Producer at LiveMint. She is a digital journalist with more than six years in the news industry.
In her current role, she covers both national and international politics, and also keeps a close watch on the latest trends in science and space exploration.
Akriti joined the LiveMint team in October 2023. Before this, she built a strong career at other major media houses. She worked as a senior sub-editor at India Today. Later, she moved to CNBCTV-18. There, she covered high-pressure topics like breaking news and major elections. She spent much of her time analysing Parliament bills and complex political debates. She is also a skilled editor who knows how to polish a story for a digital audience.
One of her career highlights happened at CNBCTV-18. She made her first television debut during the Chandrayaan-3 mission. She also provided special on-air coverage for the Karnataka Elections.
When she is not busy with breaking news, Akriti loves to write explainers and interview experts on a wide range of issues. She also enjoys making complex space missions easy for everyone to understand.
Her education helps her tackle these diverse subjects. She holds a BA in English Literature, a Postgraduate Diploma in Mass Communication, and a Master’s degree in Development Studies. She is currently expanding her knowledge in climate journalism.
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