India and New Zealand are trying to conclude a free trade agreement (FTA) as it has gained fresh momentum this year, driven by an ambitious and mutually beneficial economic partnership. The negotiations, dormant for a decade before resuming in March 2025, are now undergoing their fourth cycle from November 3 to 7 in Auckland. Indian Commerce Minister Piyush Goyal is visiting New Zealand this week to further these discussions with New Zealand’s Minister of Trade, Todd McClay.
FTA negotiations cover substantive aspects, including trade in goods, trade in services, and rules of origin. The two sides aim to resolve outstanding issues from earlier rounds and move toward an early conclusion of the agreement. The agreement is projected to improve market access, increase trade and investment, and facilitate new avenues for cooperation across areas such as technology, agriculture, and services.
India and New Zealand’s trade in goods with each other has been growing quickly. In 2024–25, it grew by almost 49%. Textiles, medicines, refined petrol, agricultural equipment, and a variety of manufactured goods are some of the most important things India exports to New Zealand. Agricultural goods, minerals, meat products, and wood are among the key exports that New Zealand sells to India.
The trade pact’s return to the spotlight follows New Zealand Prime Minister Christopher Luxon’s visit to India earlier this year, as well as a series of high-level visits by leaders that indicate the political willingness on both sides to conclude the FTA soon. The visit of the Indian Commerce Minister will involve interactions with industrialists and investors to foster greater partnerships beyond the government-to-government level.
While both sides have lauded progress, some of the finer details, including those in areas such as dairy trade, remain to be resolved. However, the trade deal is widely considered essential for strengthening economic relations and increasing bilateral trade volumes, with the expectation that it will be finalized before the current term of the New Zealand government ends.
India-New Zealand Trade Deal Progress
- The fourth round of FTA negotiations is scheduled to take place in Auckland from November 3 to 7, 2025.
- Discussions focus on trade in goods, services, and the rules governing the origin of goods.
- The intention is to expedite the process for a balanced and comprehensive economic partnership.
- Political and business-level engagements aim to build private sector collaboration.
Economic Context
- India’s bilateral merchandise trade with New Zealand increased by nearly 49% in 2024-25 to approximately USD 1.3 billion.
- India exports textiles, medicines, petrol, agricultural machinery, electronics, and food products.
- New Zealand exports agricultural goods, minerals, meat, dairy, timber, and wool to India.
Strategic Importance
- The FTA boosts market access, trade, investment, and technology cooperation.
- High commitment from leaders Narendra Modi and Christopher Luxon.
- The deal is expected to open new opportunities for sustainable growth and prosperity.
- Certain issues, such as dairy trade specifics, remain under negotiation.
Political Developments
- Commerce Minister Piyush Goyal’s official visit to New Zealand to fast-track talks.
- New Zealand Prime Minister skipped parliament to meet Goyal, showing priority.
- Both countries are working towards an early conclusion expected in 2025.
This trade agreement represents a significant step forward in trade relations between India and New Zealand. It promises to bring the two countries’ economies closer together, helping them collaborate in various areas and fostering long-term growth for both.