By Ayushi Agarwal

New Delhi [India], December 23 (ANI): India and New Zealand on Monday announced the conclusion of a landmark Free Trade Agreement (FTA), a development expected to significantly deepen economic engagement and strengthen long-term cooperation between the two countries.

Welcoming the agreement, Michael Fox, Head of Global Public Affairs at Zespri and former Chair of the India-New Zealand Business Council, said the deal signals a new era in the bilateral relationship and reflects a clear commitment from both sides to unlock new trade and partnership opportunities.

'The agreement is hugely welcome and signals a new era in the relationship,' Fox said during an interview with ANI, noting that the strong emphasis on mutual benefit would be central to the success of the partnership going forward. He added that the FTA is designed not only to enhance market access but also to create shared value for businesses and communities in both countries.

Fox highlighted horticulture, particularly kiwifruit, as a key beneficiary of the agreement. Improved market access will allow Zespri to supply more high-quality, nutritious kiwifruit to India's growing base of health-conscious consumers, while investments to build high-value demand are expected to benefit Indian growers during their domestic production season.

As part of the FTA, the Kiwifruit Action Plan (KAP) will be launched as a flagship initiative. Under the plan, the New Zealand Institute for Bioeconomy Science Ltd (BSI) and the New Zealand kiwifruit industry will work alongside Indian kiwifruit growers in rural communities to support improved production practices and strengthen supply-chain performance. Fox described the initiative as a strong example of the mutual benefits embedded in the trade pact.

Commenting on the broader geopolitical context, Fox said the successful conclusion of the agreement amid an increasingly complex Indo-Pacific environment underscores the importance of cooperation between like-minded partners. He noted that the FTA reinforces the value of the international rules-based system, providing clarity and certainty for businesses making decisions related to investment and market development.

'This should be a real boost to business confidence,' he said.

Reflecting on his tenure as Chair of the India-New Zealand Business Council, Fox said the FTA provides a solid platform for expanding trade and investment ties at a time when countries are actively diversifying economic partnerships. He pointed to the complementary nature of the two economies, spanning primary industries such as horticulture, high-tech sectors like space, as well as services and people-to-people exchanges.

With continued engagement from governments, businesses, and wider communities, Fox said the bilateral relationship is well-positioned to strengthen further in the years ahead. 'If that investment continues, we will see stronger benefits over time,' he added.

On Monday, Prime Minister Narendra Modi held a telephone conversation with the Prime Minister of New Zealand, Christopher Luxon, as the two leaders jointly announced a landmark India-New Zealand Free Trade Agreement. The leaders agreed that the FTA would serve as a catalyst for greater trade, investment, innovation, and shared opportunities between the two countries.

The leaders also welcomed progress in other areas of bilateral cooperation, including defence, sports, education and people-to-people ties.

With negotiations having been initiated during New Zealand PM Luxon's visit to India in March 2025, the two leaders agreed that the conclusion of the FTA in a record time of 9 months reflects the shared ambition and political will to further deepen ties between the two countries. The FTA would significantly deepen bilateral economic engagement, enhance market access, promote investment flows, strengthen strategic cooperation between the two countries, and also open up new opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth of both countries across various sectors.

Christopher Luxon said in a post on X, '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. 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. Our Government is relentlessly focused on fixing the basics and building the future - with new trade deals like this helping to grow our economy so all Kiwis can get ahead.'

The agreement will significantly deepen cooperation across services, mobility, goods, investment and trade facilitation. As part of the deal, New Zealand has committed to invest USD 20 billion in India over a 15-year period, broadly on the lines of the European Free Trade Association (EFTA) model.

India, for its part, has offered market access to New Zealand in 106 services sectors and extended MFN treatment in 45 services sectors. In goods trade, India's simple average MFN tariff of 16.2 per cent will reduce to 13.18 per cent upon entry into force of the FTA, further to 10.30 per cent after five years, and to 9.06 per cent by the tenth year.

Market access has been offered on 70.03 per cent of tariff lines, while 29.97 per cent have been excluded, largely covering sensitive sectors such as dairy, select animal and vegetable products, sugar, fats and oils, arms and ammunition, gems and jewellery, and copper and aluminium products.

India-New Zealand economic engagement has shown steady momentum. Bilateral merchandise trade reached USD 1.3 billion in 2024-25, while total trade in goods and services stood at approximately USD 2.4 billion in 2024, with services trade alone reaching USD 1.24 billion.

The India-New Zealand FTA is expected to enhance trade flows, improve regulatory certainty and strengthen long-term strategic and economic ties between the two countries. (ANI)