India-New Zealand pact to boost trade 10-fold in 10 years: Commerce Minister Piyush Goyal

Suggesting trade could grow 10-fold in just 10 years, Commerce Minister Piyush Goyal on Tuesday said a proposed free trade agreement (FTA) with New Zealand could bolster bilateral ties significantly.

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He supported New Zealand Prime Minister Christopher Luxon’s ambitious plan of signing the FTA between the two countries in a record time of 60 days, Goyal said, “India will be aspiring to do this equally fast, maybe faster”.

Following a bilateral meeting between Prime Minister Narendra Modi and his New Zealand counterpart Christopher Luxon — who is on a visit to New Delhi — the two countries have restarted negotiations for an FTA after a decade-long hiatus.

Addressing a gathering of business tycoons at the FICCI-organised ‘India-New Zealand Economic Forum’, in New Delhi, Goyal said the FTA could expand trade ties in farm products, critical minerals, pharmaceuticals and tourism sectors.

The development assumes significance as the talks are taking place against a backdrop of mounting global trade tensions, following US President Donald Trump’s decision to impose reciprocal tariffs on imported goods from several countries, including India.

“India is also accelerating efforts to secure trade agreements with the European Union and the United Kingdom,” the Minister said. He hoped that the huge amount of opportunity in innovation that comes out of New Zealand can reach the whole world through India.

With New Zealand’s Minister of Trade and Investment Todd McClay standing next to him, Goyal said manufacturing and production in India for the world at competitive prices can help the country take this partnership to greater heights.

On the other hand, Luxon said New Zealand expects an enhanced partnership with India in the fields of aerospace and renewable energy, among others.

“Let’s drive this relationship forward. I look forward to Prime Minister Modi signing that agreement in 60 days,” he said. Bilateral trade between India and New Zealand stood at $1.7 billion in the 2023-24 financial year, which ended in March 2024.

Calling India and New Zealand as “aspirational two friends working together in a spirit of cooperation, respecting each other’s sensitivities”, Goyal said no one had imagined that India would be able to sign a trade pact with UAE in just 90 days.

“Both our leaders — Prime Ministers Luxon and Modi — are ambitious in making this relationship stronger, giving opportunities to the youth of both countries, leveraging on the strengths of New Zealand and India,” he said. He also asserted that he has always said that no free trade agreement is ever negotiated with a gun on anybody’s head.

Clarifying that there’s never a timeline or a dead-end date — which is sacrosanct but it’s good to be aspirational — Goyal said the FTA will be a win-win situation for both the countries and will result in expanding opportunities and economic growth.

“It will be “by and large” a full-fledged FTA as we don’t see any difficulty in that,” he shared, while revealing that it will cover the entire gamut of a full-fledged comprehensive economic partnership between the two countries and every issue that is of interest to both the partners.

Echoing similar views, New Zealand Minister Todd McClay said both India and New Zealand will do a good job together for the business community of both the countries.

“It’s good to see the relationship between India and New Zealand has grown so strong that our leaders are telling us to meet a lot and get on with the business,” he asserted, while adding that the FTA will become a reality soon.

Meanwhile, Luxon is scheduled to visit Mumbai on March 19 and 20 for interactions with Indian business leaders and representatives from various walks of life.