India–New Zealand FTA to Drive Growth in Manufacturing, MSMEs and Agriculture

Prime Minister Narendra Modi on Saturday attended a special gala luncheon hosted by New Zealand Prime Minister Christopher Luxon under the theme "India–New Zealand: A Winning Partnership" , as both countries reaffirmed their commitment to expanding cooperation following the elevation of bilateral ties to a Strategic Partnership . The event brought together eminent personalities from politics, business, industry, academia, technology, sports and the arts, reflecting the growing breadth of engagement between the two nations.

In his welcome address, Christopher Luxon highlighted the deep and enduring relationship between India and New Zealand and outlined a shared vision for strengthening bilateral cooperation and promoting mutual prosperity. Responding, Prime Minister Modi said the two countries enjoy strong complementarities and longstanding people-to-people ties, expressing confidence that the newly established Strategic Partnership would deepen collaboration across trade, investment, defence, technology, education, sports and the Indo-Pacific.

A major focus of the event was the recently concluded India–New Zealand Free Trade Agreement (FTA) , one of India's fastest-negotiated trade pacts, completed in under a year. Modi said the agreement would create fresh opportunities for businesses, youth and farmers while helping the two countries achieve their shared target of doubling bilateral trade by 2030 .

The FTA significantly expands market access for both economies. New Zealand has agreed to provide 100% duty-free access to Indian exports , opening new opportunities for sectors including textiles and apparel, leather and footwear, gems and jewellery, engineering goods, pharmaceuticals, marine products, automobiles and auto components, handicrafts, chemicals, plastics and processed food products . These industries are expected to become more competitive in the New Zealand market through the elimination of tariffs.

On the other hand, India will make 57% of New Zealand's exports tariff-free from the first day , with duties on several other products to be reduced in phases over the coming years. At the same time, India has safeguarded sensitive sectors by keeping dairy and key agricultural products outside broad tariff liberalisation, protecting the interests of domestic farmers.

Beyond tariff reductions, the agreement lays the foundation for deeper economic integration. It envisages facilitating nearly USD 20 billion in New Zealand investments over the next 15 years , targeting sectors such as infrastructure, renewable energy, agritech, food processing, manufacturing, logistics, innovation and supply chains . Dedicated provisions have also been included to strengthen micro, small and medium enterprises (MSMEs) , promote women-led enterprises , simplify customs procedures and encourage digital trade.

The pact further broadens cooperation in the services sector , including information technology, healthcare, professional services, education, research, traditional medicine, startup ecosystems and skilled workforce mobility . In agriculture, both countries agreed to focus on technology transfer, climate-smart farming, productivity enhancement, agritech innovation and value-added agricultural exports , rather than opening India's dairy market.

Modi's visit, the first bilateral visit by an Indian Prime Minister to New Zealand in nearly four decades , marks a significant milestone in bilateral relations. During the visit, the two leaders adopted a comprehensive Roadmap to 2030 and announced 18 bilateral outcomes spanning trade, investment, defence, maritime security, counter-terrorism, cyber security, education, science and technology, agriculture, disaster resilience, innovation and cultural exchanges .

The two countries also agreed to strengthen defence cooperation, enhance maritime collaboration in the Indo-Pacific and deepen intelligence sharing through closer cooperation against terrorism, violent extremism, cyber threats and transnational organised crime , reflecting the expanding strategic dimension of the partnership.

Following the gala luncheon, Modi and Luxon toured an exhibition showcasing innovative sports equipment and interacted with decorated New Zealand athletes and stakeholders involved in high-performance sports. Recalling 100 years of sporting engagement between India and New Zealand, Modi said the newly concluded Sports Joint Action Plan would expand cooperation beyond cricket to include hockey, rugby, sports science, athlete exchanges, coaching, high-performance training and sports infrastructure development . The initiative also complements India's preparations to host the 2030 Commonwealth Games .

The leaders also emphasised stronger collaboration in higher education, artificial intelligence, emerging technologies, scientific research and innovation , while reaffirming the importance of the Indian diaspora, tourism, cultural exchanges and youth engagement in strengthening people-to-people ties.

Describing the relationship as one built on shared democratic values and common aspirations, Modi said the Strategic Partnership , together with the ambitious Free Trade Agreement , would unlock new avenues for trade, investment and innovation, positioning India and New Zealand as closer economic and strategic partners in the Indo-Pacific. With expanded market access, greater investment commitments and cooperation across multiple high-growth sectors, both countries expect the landmark agreements to drive sustained economic growth and deliver tangible benefits to businesses, farmers, entrepreneurs and young people in the years ahead.