India and New Zealand have agreed to commence in-depth negotiations on a mutually advantageous free trade agreement, Indian Prime Minister Narendra Modi announced on Monday following discussions with New Zealand Prime Minister Christopher Luxon.

An Indian foreign ministry official stated that the agreement is expected to be finalized by the end of 2025.

According to data from the Observatory of Economic Complexity, India’s exports to New Zealand amounted to $682 million in 2023, while New Zealand’s exports to India totaled $369 million during the same period.

“Talks on the free trade agreement have begun in a structured and time-bound manner. We aim to reach a conclusion by the end of this year,” said Jaideep Mazumdar, Secretary (East) at India’s foreign ministry.

(Exchange rate: $1 = 1.7295 New Zealand dollars)