After Oman, India signed a free trade agreement with New Zealand. Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon jointly announced the agreement during a phone call on Monday.

The agreement was concluded after nine months of conversations that started when PM Luxon visited India in March 2025.

The FTA is expected to deepen bilateral economic engagement, enhance market access, promote investment flows, and strengthen strategic cooperation between the two countries.

According to the government, this agreement is essential for opening up new opportunities for innovators, entrepreneurs, farmers, MSMEs, students, and youth of both countries across various sectors.

India-New Zealand trade grows in recent years

However, trade between India and New Zealand remains modest. This deal may boost trade significantly, as the bilateral relationship between the two countries has grown in recent years. 

For example, In 2023-24, total trade in goods and services was around US$1.75 billion. India exported about US$0.91 billion and imported about US$0.84 billion from New Zealand during that period. In 2024-25, with merchandise trade reaching roughly US$1.3 billion, up almost 49 percent year-on-year.

Leaders appreciated the deal

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 securing an investment of USD 20 billion in India from New Zealand over the next 15 years.

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 to further strengthening the India-New Zealand partnership.

India’s free trade agreement with Oman

Before this, India signed a Comprehensive Economic Partnership Agreement (CEPA) with the Gulf country Oman on Thursday (18 December). Under the CEPA, Oman offered unprecedented market access to Indian goods with zero duty on 98.08 percent of Oman’s tariff lines, covering 99.38 percent of India’s exports by value.

India’s services sector is also set to benefit, as Oman has made strong commitments across a wide range of areas, including computer-related services, business and professional services, audio-visual services, research and development, as well as education and health services.