New Zealand PM Announces Major India Trade Pact, Says 57% Exports to Be Tariff-Free

‘57% of Our Exports Will Be Tariff-Free’: New Zealand PM Makes Big India Trade Deal Announcement

New Zealand Prime Minister Christopher Luxon on Thursday said the recently signed India-New Zealand Free Trade Agreement (FTA) will give a major boost to his country’s exporters, announcing that 57 per cent of New Zealand’s exports to India will be tariff-free from day one.

The announcement came a day before Prime Minister Narendra Modi begins his two-day state visit to New Zealand from July 10 to 11, the first visit by an Indian prime minister to the country in nearly four decades. Sharing the development on X, Luxon said the trade pact would create fresh opportunities for New Zealand businesses by improving access to one of the world’s fastest-growing markets.

“New Zealand businesses are set to boom with our India Trade Deal. 57% of everything we export to India will be tariff-free from day one,” he posted.

Modi’s Visit to Focus on Expanding Bilateral Ties

Earlier announcing Modi’s visit, Luxon described India as one of the world’s largest and fastest-growing economies and said the relationship between the two countries was entering a new phase. He said the Free Trade Agreement, signed in April, would boost exports, create jobs and strengthen New Zealand’s economy by opening access to India’s 1.4-billion-strong consumer market.

According to the New Zealand Prime Minister, the agreement will help businesses expand their reach, generate higher incomes and support economic growth across the country.

FTA to Deepen Economic Partnership

The India-New Zealand FTA is aimed at expanding bilateral trade, encouraging investment and enhancing cooperation across goods and services. Under the agreement, all Indian exports will receive duty-free access to the New Zealand market, while 57 per cent of New Zealand’s exports to India will become tariff-free immediately, with further tariff reductions expected over time.

The deal is expected to strengthen India’s engagement in the Indo-Pacific region while providing New Zealand with greater access to one of the world’s fastest-growing major economies.

Trade, Defence and Investment on Agenda

During his visit to Auckland, Prime Minister Modi is expected to hold bilateral talks with Christopher Luxon covering trade, investment, defence and other areas of strategic cooperation.

The Prime Minister is also scheduled to meet leading business and sports personalities and interact with members of the Indian diaspora as both nations seek to further expand their economic and strategic partnership.