'More Jobs, Incomes & Trade': New Zealand PM Luxon Welcomes FTA With India

The agreement has, however, revealed fractures within the governing coalition. Foreign Minister Winston Peters, who leads the New Zealand First party, criticised the deal as “neither free nor fair”.

By : ABP Live Focus | Updated at : 27 Dec 2025 08:33 AM (IST)

The FTA was announced earlier this week following talks between Luxon and Indian Prime Minister Narendra Modi.
Source : ANI
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New Zealand Prime Minister Christopher Luxon on Saturday welcomed the Free Trade Agreement (FTA) with India, hailing it as a major achievement for his government despite open dissent within his ruling coalition. Describing the pact as a cornerstone of New Zealand’s economic future, Luxon said it would unlock access to India’s vast market and drive jobs, incomes and exports. His remarks came days after Foreign Minister Winston Peters publicly criticised the deal, exposing sharp differences over its scope and fairness.

Luxon Hails Economic Gains

Luxon said the FTA fulfilled a key election promise, stressing its potential to transform New Zealand’s economy. “We said we’d secure a Free Trade Agreement with India in our first term, and we’ve delivered,” he said. The prime minister added that the deal would boost employment, raise incomes and expand exports by opening doors to nearly 1.4 billion Indian consumers, aligning with his government’s broader agenda of “fixing the basics” while planning for long-term growth.

Coalition Split Over Trade Pact

The agreement has, however, revealed fractures within the governing coalition. Foreign Minister Winston Peters, who leads the New Zealand First party, criticised the deal as “neither free nor fair”. Peters said he had conveyed his party’s concerns to India’s external affairs minister S Jaishankar, adding that he held “utmost respect” for him despite opposing the agreement.

Deal Follows Modi-Luxon Talks

The FTA was announced earlier this week following talks between Luxon and Indian Prime Minister Narendra Modi. Both leaders said the agreement could double bilateral trade within five years and spur investments worth about USD 20 billion in India over the next 15 years. Negotiations began in March, with both sides describing the pact as a reflection of shared ambition and political will to deepen ties.

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Published at : 27 Dec 2025 08:33 AM (IST)
Tags :
Christopher Luxon India New Zealand India NZ Trade

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