NZ-India free trade deal could take effect next month, PM Luxon hints

NZ-India free trade deal could take effect as early as next month, Luxon hints

Prime Minister Christopher Luxon has hinted that the New Zealand-India Free Trade Agreement could come into force as early as next month, potentially bringing immediate cost reductions for exporters.

Luxon made the remarks while speaking to reporters in Koror, Palau, where he is attending the Pacific Islands Forum leaders’ retreat.

He was responding to reports in Indian media suggesting the trade deal’s entry into force was imminent.

The Press Trust of India reported that an official had indicated the agreement could take effect next month, immediately reducing costs for exporters.

Asked to confirm the reports, Luxon said, “If if that is the case, how exciting is that for New Zealand. Exciting, isn’t it?

“I even saw a couple of New Zealand First people getting excited about it, which is great,” he said.

NZ First does not support the trade agreement.

Luxon said the size and growth of India’s economy presented a significant opportunity for New Zealand.

“You know how I feel about it, which is, you know, it’s going to be the third-biggest economy in the next few years in the world. It’s the largest population. It’s 440 million in the middle class; there’ll be 750 million by the end of the decade.

“All of that just represents a massive, massive opportunity for New Zealand,” Luxon said.

New Zealand and India are aiming to double bilateral trade to US$5 billion within five years.

New Zealand and India formally signed a Free Trade Agreement in New Delhi, in April, marking what officials called a “once-in-a-generation” deal aimed at significantly boosting economic ties between the two countries.

Photo: Piyush Goyal/X

The deal was signed by Trade Minister Todd McClay and Minister of Commerce and Industry of India, Piyush Goyal, in the presence of New Zealand delegation at India Trade Promotion Organisation (ITPO) - Bharat Mandapam.

Following the signing, Indian Prime Minister Narendra Modi also made his official visit to New Zealand, arriving in Auckland in July, where he was received by New Zealand Prime Minister Christopher Luxon.

The visit marked the first time in 40 years that an Indian prime minister had travelled to New Zealand.