New Delhi, Dec 22 (AHN) Prime Minister Narendra Modi held a telephone conversation with New Zealand's Prime Minister, Christopher Luxon, on Monday as the two leaders jointly announced the successful conclusion of the historic, ambitious and mutually beneficial India-New Zealand Free Trade Agreement (FTA).

During the conversation, both leaders expressed confidence in doubling bilateral trade over the next five years as well as an investment of $20 billion in India from New Zealand over the next 15 years.

The negotiations began in March this year and the two leaders concluded the FTA in a record time of nine months, reflecting the shared ambition and political will to further deepen ties between the two countries, according to a statement from Prime Minister's Office (PMO).

“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,” said the statement.

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.

This historic FTA eliminates and reduces tariffs on 95 per cent of New Zealand’s exports – among the highest of any Indian FTA - with almost 57 per cent being duty-free from day one, increasing to 82 per cent when fully implemented, with the remaining 13 per cent subject to sharp tariff cuts.

It puts New Zealand exporters on an equal or better footing to our competitors across a range of sectors and opens the door to India’s rapidly expanding middle class, according to an official statement from New Zealand.

“The Indian economy is forecast to grow to NZ$12 trillion by 2030. The India-NZ Free Trade Agreement unleashes huge potential for our world-class exporters to the world’s largest country and will significantly accelerate progress towards New Zealand’s ambitious goal of doubling the value of exports over 10 years,” it added.