- Analysts suggest the FTA will help Indian exporters diversify their trade portfolio and reduce dependence on any single market, promoting sustainable growth and stronger economic ties
- By leveraging each country’s strengths and addressing shared challenges, the deal is expected to create equitable gains and deepen bilateral economic integration, benefiting businesses and consumers in both nations
India and New Zealand have announced the conclusion of a bilateral Free Trade Agreement (FTA), marking a significant milestone in their economic partnership. Prime Minister Narendra Modi informed his New Zealand counterpart, Christopher Luxon, about the agreement, which will be India’s third FTA in 2025 following deals with the United Kingdom in July and Oman in December.
The proposed FTA aims to be comprehensive and balanced, ensuring mutual benefits while respecting the sensitivities of both nations. India is expected to safeguard its subsistence farmers and dairy sector, while offering concessions on non-competing products such as kiwi fruits and timber. The agreement will also provide avenues for India to export organic products, pharmaceuticals, and professional services to New Zealand through mutual recognition agreements (MRAs), which allow for recognition of professional qualifications and quality standards.
- Negotiations for the FTA progressed rapidly, with four formal rounds completed since discussions began in March 2025
- The most recent round took place in Rotorua, New Zealand, during Commerce Minister Piyush Goyal’s visit
- Earlier, New Zealand’s Trade and Investment Minister, Todd McClay, had met Goyal in New Delhi to advance the talks
- Officials noted that the draft agreement is ready and an official announcement is expected soon
The FTA is anticipated to strengthen bilateral trade, which reached $1.3 billion in 2024-25, showing nearly 49% year-on-year growth. It is expected to unlock new opportunities across multiple sectors, including agriculture, food processing, renewable energy, pharmaceuticals, education, and services, providing a more conducive environment for investment and business collaboration.
The agreement builds on the renewed momentum in India-New Zealand relations following PM Luxon’s five-day visit to India in March 2025. During that visit, both leaders emphasized the importance of a balanced, ambitious, and mutually beneficial trade deal, with a focus on supply chain integration, enhanced market access, and cooperation in emerging areas like digital payments.
