Wellington, April 29 (ANI): New Zealand and India have finalized a historic Free Trade Agreement (FTA), with leaders in both countries describing it as a transformative milestone for Indo-Pacific economic relations. While Wellington views the pact as a gateway to the world’s most populous consumer market, New Delhi has framed the deal as part of a broader expansion of its global trade diplomacy, with additional agreements with the United States and the European Union on the horizon.
In a video address shared on the social media platform X on Wednesday, New Zealand Prime Minister Christopher Luxon highlighted the scale of the Indian market.
“Well, look, you’ve probably heard about the Indian FTA getting signed in India over the weekend, and this is fantastic news because it’s a once-in-a-generation opportunity for New Zealand. Why do I say that? Well, it’s pretty simple. India is now the most populous country on planet Earth,” the Prime Minister said.
Elaborating on India’s demographic and economic growth, Luxon said the country’s population of about 1.5 billion is becoming increasingly affluent.
“They have about one and a half billion people inside the country. They’re increasingly getting wealthier and, as a result, they want to consume higher-quality products and services from places like New Zealand. And, importantly also, it’s going to become the world’s third-largest economy,” he added.
Luxon said the agreement allows New Zealand to benefit from India’s rapid economic rise.
“So there’s a huge opportunity for New Zealand to grow with India as India moves from low-income to middle-income, demanding more of New Zealand’s products and services,” he said.
He also pointed to the immediate trade benefits of the agreement, saying the deal would reduce barriers for Kiwi exporters.
“Of about the 95% of stuff that we export to India, the good news is that right from day one, 57% is tariff-free, and it moves up over the course of the agreement. So we get more and more of our goods not having to deal with the extra costs,” Luxon said.
He added that the tariff reductions would make New Zealand exporters more competitive in the Indian market.
“It makes them much more competitive. It means that we can compete with products from all around the world in the Indian marketplace as it grows,” he said.
In New Delhi, Commerce and Industry Minister Piyush Goyal said the agreement marks the seventh free trade pact he has signed during his tenure over the past three and a half years. Goyal, along with New Zealand Trade and Investment Minister Todd McClay, signed the deal on Monday, and it is expected to take effect by the end of this year.
Highlighting India’s pace of trade diplomacy, Goyal said the government is close to finalizing more landmark agreements with major Western economies.
“With this India-New Zealand FTA, it is the seventh free trade agreement that I am signing in the last three and a half years. Two more to go very soon in the next few months with the European Union and the United States of America,” Goyal said.
The minister’s remarks reflect a period of intense trade activity for the government, which has already concluded agreements with the United Arab Emirates, Australia, the United Kingdom, and the EFTA bloc.
The momentum continues as an Indian delegation recently completed a mission to Washington to finalize the first phase of a bilateral trade deal with the United States, focusing on market access and digital commerce under a framework established on February 7. (ANI)
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