New Zealand Prime Minister Christopher Luxon has backed the proposed Free Trade Agreement with India, positioning it as a key pillar of his government&rsquo;s growth strategy focused on jobs, incomes and exports. The deal is being framed as a long-term economic opportunity anchored in access to India&rsquo;s vast market.
The agreement was announced after talks between Luxon and Prime Minister Narendra Modi, with both sides projecting a sharp expansion in bilateral trade over the next five years and significant investment flows into India over the longer term. Negotiations began earlier this year and are being presented as a step toward deeper strategic and economic ties.
However, the FTA has exposed divisions within New Zealand&rsquo;s ruling coalition. Critics argue the deal was rushed and delivers limited gains, particularly for the agriculture sector. Dairy has emerged as a central concern, with key products kept outside the agreement&rsquo;s scope to fast-track negotiations.
Migration provisions have also drawn criticism, with fears that expanded labour mobility could strain New Zealand&rsquo;s tight job market. Despite the internal pushback, trade between the two countries continues to grow, led by Indian pharmaceutical exports and New Zealand forestry and agricultural products, highlighting both the promise and the political sensitivity of the deal.

Luxon sells growth case as coalition partner flags trade and migration risks

NZ PM Backs India FTA Amid Rift

Luxon sells growth case as coalition partner flags trade and migration risks

December 27, 2025 | 15:07 IST