Media365
New Zealand Prime Minister Christopher Luxon has highlighted the economic gains of the India-New Zealand Free Trade Agreement (FTA) ahead of Prime Minister Narendra Modi’s landmark visit to the country, saying that 57 per cent of New Zealand’s exports to India will become tariff-free from the first day the agreement comes into force.
The announcement comes just as Modi begins his two-day state visit to New Zealand from July 10 to 11. The trip marks the first visit by an Indian Prime Minister to the country in nearly four decades and is expected to further strengthen bilateral ties in trade, investment and strategic cooperation.
Posting on X on Thursday, Luxon said the trade agreement would provide a major boost to New Zealand businesses by opening greater access to the Indian market.
“New Zealand businesses are set to boom with our India Trade Deal. Fifty-seven per cent of everything we export to India will be tariff-free from day one,” he wrote.
Trade deal at the centre of Modi’s visit
The India-New Zealand FTA, signed in April this year, is expected to significantly deepen economic ties between the two countries. The agreement seeks to increase bilateral trade, encourage investment and expand cooperation in goods and services.
Under the pact, all Indian exports will enjoy duty-free access to the New Zealand market. In return, India will eliminate tariffs on a substantial share of imports from New Zealand in phases, with 57 per cent of New Zealand’s exports becoming tariff-free immediately.
The agreement gives New Zealand greater access to one of the world’s fastest-growing major economies and a consumer market of over 1.4 billion people, while helping India strengthen its trade presence in the Indo-Pacific region.
Earlier, while announcing Modi’s visit, Luxon described India as one of the world’s largest and fastest-growing economies and an increasingly important economic partner for New Zealand.
“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 added that the deal would create fresh opportunities for New Zealand exporters, generate more income for local communities and support higher wages by expanding access to the Indian market.
Historic visit after nearly 40 years
Modi’s visit is being seen as a milestone in India-New Zealand relations. It is the first official visit by an Indian Prime Minister to New Zealand in almost 40 years and comes as both countries seek to diversify trade partnerships amid an uncertain global economic environment.
During his stay in Auckland, Modi is expected to hold wide-ranging talks with Luxon covering trade, commerce, investment, defence cooperation and regional security.
The two leaders are also expected to review progress on implementing the FTA and discuss ways to expand cooperation in sectors such as technology, agriculture, education, clean energy and innovation.
Apart from official engagements, Modi is scheduled to meet leading business executives and sports personalities and address members of the Indian diaspora.
The visit is expected to reinforce the growing strategic partnership between the two countries while giving fresh momentum to economic ties anchored by the newly signed trade agreement.
With inputs from agencies.
