New Delhi [India], December 22 (ANI): The India-New Zealand Free Trade Agreement (FTA) will open new gateways to prosperity setting up a new milestone in the Narendra Modi government, said Union Home Minister Amit Shah on Monday.

Taking it to social media platform X, Shah said, 'Modi govt's trade diplomacy sets new milestone. India-New Zealand FTA, that brings in USD 20 billion investment and offers lucrative opportunities for Indian innovators, entrepreneurs, farmers, MSMEs, students, and youth, will open new gateways to prosperity.'

'It is a textbook example of how, people-centric foreign policy is fulfilling the aspirations of citizens under PM Narendra Modi Ji's leadership,' he said.

Prime Minister Narendra Modi on Monday held a telephone conversation with the Prime Minister of New Zealand Christopher Luxon as the two leaders jointly announced a landmark India-New Zealand Free Trade Agreement. The leaders agreed that the FTA would serve as a catalyst for greater trade, investment, innovation and shared opportunities between both countries.

The FTA would significantly deepen bilateral economic engagement, enhance market access, promote investment flows, strengthen strategic cooperation between the two countries, and also open up new opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth of both countries across various sectors.

With the strong and credible foundation provided by the FTA, both leaders expressed confidence in doubling bilateral trade over the next five years as well as an investment of USD 20 billion in India from New Zealand over the next 15 years. The leaders also welcomed the progress achieved in other areas of bilateral cooperation such as sports, education, and people-to-people ties, and reaffirmed their commitment towards further strengthening of the India-New Zealand partnership.

The India-New Zealand FTA is expected to deliver a significant boost to India's exports, with New Zealand offering zero-duty market access on 100 per cent of its tariff lines covering all Indian exports from the date of entry into force.Labour-intensive sectors are among the biggest gainers.

With New Zealand eliminating tariffs that earlier peaked at up to 10 per cent, Indian exporters of textiles and clothing will receive zero-duty access across 1,057 tariff lines.

India's textile and apparel exports rose to USD 36.9 billion in 2024-25, while exports to New Zealand increased to USD 103 million, a trend expected to accelerate given New Zealand's annual global textile imports of nearly USD 1.9 billion.

Bilateral merchandise trade between India and New Zealand stood at USD 1.3 billion in 2024-25, registering a 49 per cent growth over the previous year. With zero-duty access, regulatory facilitation and services liberalisation, the FTA is expected to unlock the next phase of growth across multiple Indian export sectors while strengthening India's footprint in Oceania and the wider Indo-Pacific region. (ANI)