India and New Zealand on Monday announced the conclusion of negotiations of a free trade agreement, with New Delhi describing the deal as "historic, ambitious and mutually beneficial."
The announcement came after Indian Prime Minister Narendra Modi held talks with his New Zealand counterpart Christopher Luxon on Monday morning, with the two leaders jointly announcing the pact.
"The two leaders agreed that the conclusion of the FTA in a record time of nine months reflects the shared ambition and political will to further deepen ties between the two countries," the Indian prime minister's office said in a statement.
According to the statement, the FTA is expected to "significantly deepen bilateral economic engagement, enhance market access, promote investment flows, strengthen strategic cooperation between the two countries."
Both leaders expressed confidence in doubling bilateral trade over the next five years, while projecting investments worth $20 billion from New Zealand into India over the next 15 years.
Indian officials said economic engagement between the two countries has shown steady momentum, with total trade in goods and services standing at approximately $2.4 billion in 2024.
In New Zealand, while the government confirmed the conclusion of the trade talks, the agreement has sparked internal political opposition. Coalition partner New Zealand First has publicly opposed the pact.
For the deal to pass parliament, Prime Minister Luxon will have to seek support from the opposition lawmakers.
"New Zealand First is regrettably opposed to the India Free Trade Agreement announced today. We consider the India-New Zealand Free Trade Agreement to be neither free nor fair," Foreign Minister Winston Peters said on US social media company X.
"Regrettably, this is a bad deal for New Zealand. It gives too much away, especially on immigration, and does not get enough in return for New Zealanders, including on dairy," said Peters, leader of the New Zealand First party.
If passed by the New Zealand parliament, the pact is likely to be signed next year.
According to Peters, "while New Zealand is completely opening its market to Indian products under this deal, India is not reducing the significant tariff barriers currently facing our major dairy products."
"This is not a good deal for New Zealand farmers and is impossible to defend to our rural communities," he added.
