New Zealand Prime Minister Christopher Luxon has said that the recently finalised Free Trade Agreement with India will boost exports and open new opportunities for farmers, growers and businesses, describing the pact as a landmark deal with one of the world’s fastest-growing major economies.

India and New Zealand have concluded negotiations on the FTA, which is expected to take effect in seven to eight months.

The agreement aims to enhance market access and promote investment flows between the two countries, including a foreign direct investment commitment of $20 billion over a period of 15 years.

"We've concluded a Free Trade Agreement with India. This will open doors for New Zealand farmers, growers, and businesses - boosting exports, creating jobs, and lifting incomes to help all Kiwis get ahead," Luxon said in a post on social media on Tuesday.

Prime Minister Narendra Modi and Luxon held a telephone conversation last month before announcing the successful conclusion of the trade deal.

This is India’s third free trade agreement in recent months, following a similar pact with the United Kingdom in July and another with Oman in December.

The agreement with Oman will give India more temporary employment visas and easier access for pharmaceuticals and medical devices.

Describing the pact with India as a "landmark deal" with the world’s fastest-growing big economy, Luxon said it would create opportunities for jobs, exports and growth for all New Zealanders.

He noted that engagement with India had been "intensive" and said his government has worked extremely hard to prioritise and invest in the relationship since day one.

The result of this engagement is a "high-quality" trade agreement, he said in a video posted on his social media handle.

Describing India as a "trusted partner", Luxon added that the trade deal will deliver deep and lasting benefits for New Zealand.

Negotiations for the trade agreement were initiated during Luxon’s visit to India in March 2025, when the two leaders agreed on concluding the FTA.

The pact is also expected to help Indian exporters, who are reeling under the impact of 50 per cent tariffs imposed by the Trump administration on Indian goods, by enabling them to diversify shipments in the Oceania region.