India and New Zealand Take Major Step Toward Free Trade Pact as Negotiations Deepen

India and New Zealand have reaffirmed their commitment to advancing negotiations on a Free Trade Agreement (FTA), signaling strong intent to deepen economic engagement and foster new opportunities for businesses in both nations. New Zealand’s Trade and Investment Minister Todd McClay emphasized that the discussions are progressing steadily, with both sides committed to ensuring the deal is fair, durable, and beneficial for citizens. Speaking to the media following a meeting attended by Union Minister Piyush Goyal and New Zealand Prime Minister Christopher Luxon, McClay highlighted that several productive rounds of negotiations had already taken place.

“We were committed early on that we would only launch negotiations if we thought we could get it done,” McClay said. “Minister Goyal and I, with our officials, have been working very hard. There’s been an unprecedented number of negotiating rounds so far. We’re optimistic about the prospects but also determined to take the time to get it right.” He added that both sides have agreed to adopt a solution-oriented approach rather than letting negotiations stall over disagreements, calling it a sign of “maturity and partnership.”

Bilateral trade between India and New Zealand reached USD 1.75 billion in the financial year 2023–24, showing rising momentum driven by strategic cooperation. India’s key exports to New Zealand include pharmaceuticals, machinery, textiles, and precious stones, while New Zealand sends goods such as wool, fruits, iron, steel, and aluminium to India. Officials believe that a free trade framework could significantly expand this exchange by reducing tariffs, easing market access, and supporting cross-border collaboration.

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Reflecting on growing ties between the two nations, McClay called India “a strategic priority” for New Zealand’s government, noting that relationships had expanded beyond trade into defense, education, and cultural cooperation. “Christopher Luxon, when we were in opposition, said India would be a strategic priority—and we have delivered on that,” McClay stated. He also recalled the March 2025 visit to India, during which 33 Memorandums of Understanding (MOUs) and bilateral agreements were signed, including a pact between Air India and Air New Zealand for direct flights by 2028.

While declining to set a fixed timeline for sealing the agreement, both McClay and Goyal voiced confidence in the ongoing progress. “Every FTA is unique and develops at its own pace,” McClay said, drawing parallels with New Zealand’s earlier trade pact with China that grew two-way trade from a few billion to USD 40 billion in two decades. Union Minister Piyush Goyal echoed this sentiment, emphasizing India’s consistent approach of prioritizing quality and fairness in trade deals. As both nations continue to align on shared economic goals, the anticipated FTA is expected to mark a milestone in the evolving India–New Zealand partnership.

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