Prime Minister Narendra Modi and his New Zealand counterpart Christopher Luxon on Monday held a telephonice conversation to seal the Free Trade Agreement (FTA) between the two countries. The two leaders jointly announced the conclusion of the ambitious deal, which got materialised in a record time of nine months.
Both leaders conveyed optimism about significantly expanding economic ties, aiming to double bilateral trade within the next five years and attract USD 20 billion in New Zealand investments into India over the coming 15 years.
"With the strong and credible foundation provided by the FTA, both leaders expressed confidence in doubling bilateral trade over the next five years as well as an investment of USD 20 billion in India from New Zealand over the next 15 years," the Prime Minister's Office (PMO) said in a statement. "The leaders also welcomed the progress achieved in other areas of bilateral cooperation such as sports, education, and people-to-people ties, and reaffirmed their commitment towards further strengthening of the India-New Zealand partnership."
Duvulging the details about the key agreement on X, Luxon said that tariffs have been removed on 95% of New Zealand's exports to India.
"I’ve just spoken with India’s Prime Minister Narendra Modi following the conclusion of the NZ-India Free Trade Agreement. The FTA reduces or removes tariffs on 95% of our exports to India. It’s forecast that NZ exports to India could increase $1.1B to $1.3B per year over the coming two decades," Luxon posted.
He said the move will generate jobs ensuring higher wages for people in New Zealand as they will have access to one of the fastest-growing economies in the world.
“Boosting trade means more Kiwi jobs, higher wages and more opportunities for hard working New Zealanders. The agreement builds on the strong friendship between our two countries. India is one of the fastest-growing economies in the world, and this gives Kiwi businesses access to 1.4 billion Indian consumers,” he added.
With this, New Zealand has become the seventh country with which India has signed the FTA. Earlier, India had signed the FTA with Oman, the United Kingdom (UK), the United Arab Emirates (UAE), Australia, Mauritius and the European Free Trade Association.
