India, New Zealand to sign Free Trade Agreement; focus on market access and jobs

New Delhi: India and New Zealand are preparing to formalise a Free Trade Agreement on Monday, a move that is expected to deepen economic ties and improve access to each other’s markets. Christopher Luxon said the agreement would deliver tangible benefits for both countries by boosting trade flows and easing existing barriers.

Agreement to be signed on Monday

Posting on the social media platform X, Luxon confirmed the development, stating that the two nations would sign the Free Trade Agreement on Monday. In a video message, he emphasised that the deal would enhance market access for New Zealand exporters.

He specifically pointed to manufacturers of marine jet systems, which are widely used in boats and shipped to more than 70 countries, as one of the sectors likely to gain from improved access to the Indian market.

Focus on reducing trade barriers

Luxon noted that several exporters currently face tariffs when entering India, which can affect competitiveness. He said the agreement would gradually bring down such duties, making it easier for businesses to operate and expand.

According to him, the pact would help remove trade barriers and encourage stronger commercial engagement between the two countries. This, in turn, is expected to drive higher levels of trade.

Economic benefits and job creation

Highlighting the broader impact, Luxon said the agreement would support increased business activity, create employment opportunities and contribute to economic growth in New Zealand. He added that the deal would result in “more jobs, higher wages and more opportunities”.

The agreement is also expected to strengthen bilateral trade linkages, while opening up export opportunities for both sides in an increasingly competitive global market.

Legal process completed, signing scheduled

Earlier this month, legal verification of the India-New Zealand FTA was completed. Todd McClay said both countries had agreed to sign the pact on April 27, with a large group of business representatives expected to be present.

In an official statement, McClay described the agreement as a “once-in-a-generation opportunity” that would enhance trade relations and provide better market access for both nations.

Importance amid global uncertainty

McClay also underlined the significance of strengthening trade partnerships at a time of global economic and geopolitical uncertainty. He said such agreements are vital for ensuring long-term economic stability.

He added that once the FTA is signed, New Zealand will begin its parliamentary treaty examination process, allowing for public scrutiny of the agreement.

Agency inputs