India–New Zealand FTA Sealed, PM Modi Reveals The Bigger Vision Behind Historic Trade Breakthrough

India and New Zealand have described the Free Trade Agreement as a historic milestone in bilateral relations. The deal is expected to significantly strengthen economic ties and expand two-way trade. According to the Indian government, the agreement goes beyond tariff reductions and reflects a long-term strategic partnership. It is being positioned as a growth engine for businesses and workers in both countries. The timing is also crucial as India pushes for deeper global trade integration.

What Did PM Modi Say About The Deal’s Real Impact?

Prime Minister Narendra Modi said the FTA reflects a changing India that is confident on the global stage. Sharing an article by Commerce Minister Piyush Goyal, Modi said the agreement is not just about customs duties but about improving millions of lives. He highlighted that the deal represents India’s evolving trade diplomacy. Modi also pointed out that it will create new opportunities for youth, farmers, women and small businesses. The Prime Minister called it a source of national pride.

How Much Investment Has New Zealand Committed?

From India’s perspective, the biggest highlight is investment. New Zealand has committed to invest USD 20 billion in India over the next 15 years as Foreign Direct Investment. The government believes this will boost manufacturing, services and employment. Officials say this inflow will strengthen India’s economic resilience. The commitment is being seen as a vote of confidence in India’s growth story.

What Happens To Tariffs Under The FTA?

Once the FTA comes into force, around 95 percent of products imported from New Zealand into India will either become duty-free or attract significantly lower tariffs. Most products will be duty-free from the very first day. This is expected to reduce costs for consumers and businesses. It also opens the door for more competitive pricing in Indian markets. The agreement is designed to make trade smoother and faster.

Why Is This Deal Being Called A Women-Led Agreement?

Commerce and Industry Minister Piyush Goyal said this is India’s first women-led Free Trade Agreement. He revealed that almost the entire negotiation team consisted of women. Goyal described it as India’s seventh major trade agreement under Modi’s leadership. He said the deal aligns with a broader mission to strengthen the economy. The women-led aspect has been highlighted as a symbol of inclusive growth.

How Will New Zealand Benefit From This Agreement?

New Zealand’s Commerce and Industry Minister Todd McClay said the deal could increase the country’s exports by NZ$1.1 billion to NZ$1.3 billion annually in the coming decade. Experts believe sectors like agriculture, forestry, wool, timber and fruit will benefit the most. India’s growing middle class is driving demand for these products. The FTA gives New Zealand exporters better access to a vast market.

What Does This Mean For India’s Global Trade Strategy?

India will gain better access to New Zealand’s markets at competitive rates. The agreement was formally announced after a phone conversation between PM Modi and New Zealand Prime Minister Christopher Luxon. Both leaders described the deal as ambitious and mutually beneficial. Despite global economic challenges in 2025, India has turned adversity into opportunity. This is India’s third Free Trade Agreement finalised in 2025, reinforcing its push to become a major global trade hub.