New Delhi, Dec 22 (PTI) The conclusion of talks in just nine months between India and New Zealand for a free trade agreement (FTA) is a "historic milestone" reflecting a strong political will and shared ambition to deepen bilateral economic ties, Prime Minister Narendra Modi said on Monday.

The FTA is set to facilitate greater market access and promote investment flows including an FDI commitment of USD 20 billion over a period of 15 years.

Modi and his New Zealand counterpart Christopher Luxon held a phone conversation following the conclusion of the negotiations for the trade deal.

"Concluded in just nine months, this historic milestone reflects a strong political will and shared ambition to deepen economic ties between our two countries," Modi said on 'X'.

This FTA will ensure enhanced market access and deeper investment flows, and bring in numerous opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youth, he said.

The Ministry of External Affairs (MEA) said Modi and Luxon jointly announced the "successful conclusion of the historic, ambitious and mutually beneficial India-“New Zealand free trade agreement".

The FTA would significantly deepen bilateral economic engagement, enhance market access, promote investment flows, strengthen strategic cooperation and open up new opportunities, it said.

"With the strong and credible foundation provided by the FTA, both leaders expressed confidence in doubling bilateral trade over the next five years as well as an investment of USD 20 billion in India from New Zealand over the next 15 years," the MEA said.

"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," it added in a statement.

External Affairs Minister S Jaishankar described the conclusion of the negotiations for the FTA as a "landmark" development for India-New Zealand ties.

"The FTA places our partnership on an accelerated growth trajectory," he said, adding it will surely boost trade, investment and economic collaboration across sectors.

Apart from tariff liberalisation, the pact includes provisions to address non-tariff barriers through enhanced regulatory cooperation, and streamlined customs, sanitary and phyto-sanitary measures and technical barriers to trade disciplines.

Luxon said the FTA would reduce or remove tariffs on "95 per cent of our exports to India".

"It's forecast that NZ exports to India could increase USD 1.1B to USD 1.3B per year over the coming two decades. Boosting trade means more Kiwi jobs, higher wages and more opportunities for hard working New Zealanders," he said.

"The agreement builds on the strong friendship between our two countries. India is one of the fastest-growing economies in the world, and this gives Kiwi businesses access to 1.4 billion Indian consumers," he said.

The conclusion of the negotiations for the trade deal comes days after India inked a free trade pact with Oman. PTI MPB KVK KVK

India-New Zealand free trade agreement enhances market access, addresses non-tariff barriers, and includes a USD20 billion FDI commitment. A bilateral FTA between India and New Zealand concluded after nine months establishes expanded market access, tariff liberalisation covering roughly 95% of New Zealand exports to India, and a USD 20 billion FDI commitment to India over 15 years, while addressing non tariff barriers through regulatory cooperation and streamlined customs, sanitary and phytosanitary, and technical barriers to trade disciplines.