India and New Zealand have formally finalised discussions on a bilateral free trade agreement, a significant milestone in their economic relations. The declaration followed a phone call between Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon, which concluded talks that began earlier this year.

The agreement aims to increase market access by eliminating tariffs on all Indian exports and liberalising taxes on a broad range of New Zealand goods. It will allow Indian textiles, technical products, leather goods, and pharmaceuticals to enter New Zealand duty-free. Similarly, New Zealand exports such as forestry products, wool, and certain agricultural items will benefit from reduced or zero tariffs over time.

Negotiators completed the agreement in a record nine months, making it one of India’s fastest FTAs with a developed economy. Both leaders expressed confidence that the agreement will greatly improve trade and investment flows. According to official announcements, New Zealand has vowed to invest up to USD 20 billion in India over the next 15 years.

The deal also includes expanded visa access for skilled professionals and better chances for students and young entrepreneurs in both nations. Implementation is planned after legal review and parliamentary approval, with the formal signing scheduled for early 2026.