Wellington: Ahead of Prime Minister Narendra Modi’s scheduled visit to New Zealand, New Zealand Prime Minister Christopher Luxon has announced that the proposed India-New Zealand trade agreement will significantly benefit exporters, with 57 per cent of New Zealand’s exports to India set to become tariff-free from the very first day of the pact’s implementation.
Calling the agreement a major milestone for bilateral trade, Luxon said the deal would provide a strong boost to New Zealand businesses by improving market access to one of the world’s fastest-growing economies. He highlighted that the immediate removal of tariffs on more than half of New Zealand’s exports would enhance trade opportunities and strengthen economic ties between the two countries.
The announcement comes at a time when India and New Zealand are seeking to deepen their strategic and economic partnership through greater cooperation in trade, investment and regional affairs. Prime Minister Modi’s upcoming visit is expected to provide fresh momentum to negotiations on the proposed trade agreement and expand collaboration across multiple sectors.
India and New Zealand have maintained friendly diplomatic relations for decades, with trade, education, agriculture, technology and people-to-people exchanges forming key pillars of the relationship. The proposed trade pact is expected to reduce trade barriers, promote investment and create new business opportunities for companies in both countries.
According to Luxon, the agreement would particularly benefit New Zealand exporters by allowing tariff-free access to the Indian market from day one for a substantial share of their products. The move is expected to improve the competitiveness of New Zealand goods while supporting stronger commercial engagement with India.
Prime Minister Modi’s visit is likely to include discussions on strengthening economic cooperation, expanding bilateral trade, enhancing investment flows and exploring collaboration in emerging sectors. Both leaders are also expected to deliberate on regional and global issues of mutual interest, reflecting the growing importance of the India-New Zealand partnership in the Indo-Pacific region.
The proposed trade deal is being viewed as a significant step toward unlocking the untapped potential of bilateral commerce. If finalised, it is expected to pave the way for increased exports, stronger business confidence and a more comprehensive economic partnership between the two nations.
