New Delhi | The free trade agreement (FTA) with New Zealand will significantly deepen bilateral economic engagement, enhance market access and promote investment flows, India said in a statement on Monday.

Prime Minister Narendra Modi and his New Zealand counterpart Christopher Luxon on Monday announced the firming up of a "historic" FTA between the two countries.

The two prime ministers held a phone conversation, following which the announcement on the FTA was made.

"The two leaders jointly announced the successful conclusion of the historic, ambitious and mutually beneficial India-New Zealand free trade agreement," the statement issued by the Ministry of External Affairs (MEA) said.

It said the two leaders agreed that the conclusion of the FTA in a record time of nine months reflects the shared ambition and political will to further deepen ties between the two countries.

"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 youths of both countries across various sectors," the MEA said.

It said 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 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," the MEA said.