India, New Zealand resume FTA talks, bilateral meet held
India and New Zealand on Sunday announced the resumption of negotiations for a proposed free trade agreement (FTA) aimed at strengthening economic ties after a nearly decade-long hiatus.
This development is significant as both countries began negotiating the Comprehensive Economic Cooperation Agreement (CECA) in April 2010 to enhance trade in goods, services and investment. However, after nine rounds of discussions, talks stalled in 2015.
The government made the announcement after Commerce and Industry Minister Piyush Goyal met New Zealand’s Minister for Trade and Investment Todd McClay on Sunday. McClay is part of a high-level delegation led by Prime Minister Christopher Luxon, who is on a four-day visit to India starting Sunday.
In an official statement, the Commerce Ministry said: “The two nations are pleased to announce the launch of negotiations for a comprehensive and mutually beneficial India-New Zealand Free Trade Agreement (FTA).”
The government noted that the FTA aims to achieve balanced outcomes by enhancing supply chain integration and improving market access. With bilateral trade steadily growing and surpassing $1 billion during April-January 2025, the negotiations seek to unlock new opportunities for businesses and consumers, fostering mutual growth and prosperity.
However, a report by think tank Global Trade Research Initiative (GTRI) suggests that the proposed FTA may offer limited benefits to Indian companies, as many already enjoy duty-free access to a significant number of goods in the New Zealand market. The report highlights that New Zealand’s average import tariff is just 2.3 per cent, compared to India’s 17.8 per cent.
Bilateral trade between the two countries stood at $873.4 million in 2023-24 (exports: $538.33 million; imports: $335 million), down from $1.02 billion in 2022-23. According to GTRI, 58.3 per cent of New Zealand’s tariff lines (product categories) are already duty-free, providing Indian products significant access even without an FTA.
India offers huge economic opportunity: Luxon
New Delhi: New Zealand PM Christopher Luxon arrived in India on Sunday for a five-day visit, marking the first visit by a Kiwi premier in nine years. The last NZ PM to visit India was John Key in 2016. After landing here, Luxon said, “I’ve landed in India — a country of huge importance to New Zealand’s prosperity, security and society.” He added, “India provides a huge economic opportunity for Kiwis. That’s why I’m here, and that’s why I’ve brought a senior delegation of business and community leaders with me.” tns
With a diaspora of over 250,000 people of Indian origin, cultural ties between the two nations could further strengthen trade relations. India’s key exports to New Zealand include clothing, fabric, home textiles, medicines, refined petroleum, agricultural machinery, automobiles, iron and steel, electronics, diamonds and basmati rice. In contrast, India imports agricultural goods, minerals, apples, kiwifruit, meat products (such as lamb and mutton), dairy items, coking coal, timber, wool and scrap metals from New Zealand.
A key sticking point in the negotiations is likely to be duty concessions on agricultural products such as apples, kiwifruit, dairy and wine. Trade experts note that India has not granted significant concessions on dairy to any of its existing FTA partners, including Singapore, Japan, South Korea and the ASEAN.
