2 min readNew DelhiApr 27, 2026 11:33 AM IST
New Zealand Prime Minister Christopher Luxon Monday expressed optimism ahead of the signing of the Free Trade Agreement with India, calling it a “once-in-a-generation agreement”.
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“Just over a year ago, I met with Prime Minister Modi in India. We agreed then, that we’d launch negotiations on a free trade agreement. For decades, many people said it couldn’t be done. But tonight, that deal gets signed,” PM Luxon said.
“This is a once-in-a-generation agreement that gives NZ exporters unprecedented access to 1.4 billion people and an economy set to become the third-largest in the world,” he added.
He said that the pact would mean “more jobs on farms and orchards, it means more money coming into local communities, and it means more opportunities for your family to get ahead.”
The free trade agreement is aimed at doubling bilateral trade to $5 billion in five years. Bilateral merchandise trade between India and New Zealand stood at $1.3 billion in 2024-25, while total trade in goods and services reached about $2.4 billion in 2024. Negotiations concluded on December 22 last year.
The pact will be signed at Bharat Mandapam in the presence of Commerce Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Industry Minister and Todd McClay, news agency PTI reported.
The pact will give Indian companies duty-free access to the island nation’s markets, and bring in $20 billion of investment in manufacturing, infrastructure, services, innovation and job creation over the next 15 years.
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New Delhi will also get quota-based tariff cuts for kiwifruit and apple exports.
For New Zealand, it would mean an elimination or reduction of tariffs on 95 per cent of its commodities destined for Indian markets.
This year, amid global trade uncertainties, India announced closure of negotiations on its FTA with the European Union.
The NDA government has so far finalised FTAs with three members of the US-led Five Eyes (FVEY) alliance: Australia (implemented in December 2022), the UK (signed in July 2025), and New Zealand.
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New Delhi has also finalised FTAs with the UAE (implemented in May 2022), EFTA bloc (implemented in October 2025), Oman (signed in December 2025), and Mauritius (came into force from April 2021).
(With inputs from PTI)
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