New Delhi [India], January 20 (ANI): New Zealand Prime Minister Christopher Luxon has said that the recently concluded Free Trade Agreement (FTA) with India will enhance business competitiveness and drive economic growth. Delivering the 2026 State of the Nation speech, Luxon highlighted that the deal, finalised in less than a year, serves as a primary driver for domestic job creation and wage increases.

The Prime Minister stated that the agreement eliminates and reduces tariffs on 95 per cent of New Zealand's exports, with approximately 57 per cent becoming duty-free immediately upon the agreement coming into force.

'When many said it was impossible, we just got on with the job of concluding a landmark free trade agreement with India in less than a year. And that agreement eliminates and reduces tariffs on 95% of New Zealand's exports, with almost 57% duty free on day one of the agreement coming into force. That's making our businesses more competitive, creating jobs here at home, and lifting incomes. Our Free Trade Agreement with India will make our businesses more competitive, create jobs here at home and lift wages. This is another example of what I mean when I say National is fixing the basics and building the future,' Luxon said.

On December 22, India and New Zealand concluded a comprehensive, balanced and forward-looking Free Trade Agreement (FTA), marking a major economic and strategic milestone in India's engagement with the Indo-Pacific region.

The FTA stands out as one of India's fastest-concluded FTAs aligned with the national vision of Viksit Bharat 2047. The negotiations were formally launched on March 16, 2025, during the meeting between Minister of Commerce and Industry Piyush Goyal and Minister for Trade and Investment of New Zealand Todd McClay.

The agreement was concluded by holding continuous and intense discussions spread over five formal negotiation rounds, several in-person and virtual intersessions.

The FTA establishes a high-quality economic partnership that promotes employment, facilitates skill mobility, drives trade and investment-led growth, fosters innovation for agricultural productivity, and enhances MSME participation to strengthen long-term economic resilience.

The FTA eliminates tariffs on 100 per cent of its tariff lines, providing duty-free access for all Indian exports. This market access enhances the competitiveness of India's labour-intensive sectors, including textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles, directly supporting Indian workers, artisans, women, youth and MSMEs and integrating them deeper into global value chains, according to the commerce ministry. (ANI)