India and New Zealand Sign Free Trade Agreement (FTA)

India and New Zealand have finalized their Free Trade Agreement (FTA). Recently, Prime Minister Modi confirmed the deal over a phone call with New Zealand, marking a significant milestone in the two countries' trade relations. New Zealand's Prime Minister, Christopher Luxon, has termed the FTA as a landmark deal, emphasizing that it will result in more jobs and higher income for both nations. He also stated that the deal will increase exports from Indian markets.

On the social media platform X, New Zealand's Prime Minister wrote, "We promised to have a Free Trade Agreement with India during our first term, and we have delivered. This landmark deal opens the doors to 1.4 billion Indian consumers, bringing more jobs, more income, and more exports."

On December 22, India and New Zealand signed a comprehensive, balanced, and forward-looking Free Trade Agreement (FTA). This deal is seen as a major economic and strategic milestone in India's engagement with the Indo-Pacific region.

It is believed that this FTA is one of the fastest concluded FTAs for India, aligning with India's vision for a developed nation by 2047. Official talks began on March 16, 2025, during a meeting between India's Commerce and Industry Minister Piyush Goyal and New Zealand's Trade and Investment Minister Todd McClay.

However, New Zealand's Foreign Minister, Winston Peters, recently criticized the India-New Zealand FTA, calling it neither free nor fair. He pointed out that while New Zealand will open its market fully to Indian products, India did not agree to reduce the significant tariffs on New Zealand's key dairy exports. Peters described this outcome as a challenge for farmers and rural communities and stated that, unfortunately, it is a bad deal for New Zealand.