New Zealand Prime Minister Christopher Luxon on Thursday announced that 57 per cent of the country’s exports to India would become “tariff-free from day one” under a proposed trade agreement, ahead of Prime Minister Narendra Modi’s scheduled visit to New Zealand. Luxon said the deal would provide a major boost to New Zealand businesses by improving access to one of the world’s fastest-growing markets. Speaking ahead of Modi’s visit, Luxon highlighted the potential economic benefits of the India-New Zealand trade agreement, saying it would strengthen commercial ties between the two countries.
He said the proposed pact would create new opportunities for exporters and support greater cooperation across multiple sectors. The New Zealand prime minister said the agreement would help businesses expand their presence in India by reducing trade barriers. The move is expected to benefit exporters by improving market access and creating a more favourable environment for bilateral commerce. India and New Zealand have been working towards strengthening economic engagement, with trade negotiations focusing on improving access for goods and services between the two nations.
The proposed agreement is aimed at boosting exports, encouraging investment and expanding cooperation in areas of mutual interest. Luxon’s announcement came as preparations intensified for Prime Minister Modi’s visit to New Zealand, where discussions are expected to focus on trade, investment, technology, education and strategic cooperation. The visit is seen as an opportunity to further deepen ties between the two countries. The India-New Zealand relationship has traditionally included cooperation in areas such as agriculture, education, tourism and business.
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Officials from both sides have been exploring ways to increase economic engagement and create new opportunities for companies operating in both markets. For New Zealand, India represents a significant growth opportunity due to its large consumer base and expanding economy. Industries including agriculture, food processing, technology and services are expected to benefit from improved trade conditions if the agreement is finalised. Luxon said the proposed deal reflected New Zealand’s efforts to build stronger partnerships in the Indo-Pacific region.
He added that expanding economic links with India would support businesses, create jobs and contribute to long-term economic growth. The announcement comes ahead of Modi’s visit at a time when both countries are seeking to enhance their strategic and economic partnership. The two leaders are expected to discuss ways to increase collaboration and address shared priorities during their meetings. While details of the final agreement are still being worked out, New Zealand’s announcement signals progress in bilateral trade discussions. The proposed tariff reductions could mark a significant step towards expanding commercial relations between India and New Zealand.
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