New Delhi: India and New Zealand on Sunday launched negotiations for a “comprehensive and mutually beneficial” free trade agreement, paving the way for second bilateral trade deal in the Oceania after concluding an FTA pact with Australia in April 2022.
“We are delighted to announce the launch of India-New Zealand Free Trade Agreement (FTA) negotiations. This marks a significant milestone in our partnership, reflecting our shared vision to deepen trade ties and expand economic opportunities,” commerce minister Piyush Goyal said in a post on X.
With bilateral trade continuing to grow steadily, surpassing $1 billion during April-January 2025, the FTA negotiations aim to unlock new avenues for businesses and consumers, fostering mutual growth and prosperity of our nations, he said after a meeting with New Zealand’s trade and investment minister Todd McClay in New Delhi. The announcement came on the eve of the bilateral meeting between Prime Minister Narendra Narendra Modi and New Zealand PM Christopher Luxon.
After landing in the Indian Capital on Sunday, Luxon said in a post on X: “I’ve landed in India – a country of huge importance to New Zealand’s prosperity, security and society. India provides 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.” Luxon arrived in New Delhi on his first official visit to India.
According to commerce ministry data, India exported merchandise worth $538 million to New Zealand in 2023-24, and imported goods of $335 million from the country, with $203 million balance of trade in India’s favour that fiscal year.
The bilateral trade, however, picked up in the current financial year between the two partners in a more balanced manner. India’s goods export to New Zealand in 2024-25 (up to December 31) saw an annualized growth of 21.49% to $496 million, while imports from the country surged 78.72% to $463 million during the period, narrowing the trade deficit to $33 million, data showed.
India’s primarily imports from New Zealand include wool, iron and steel, fruit and nuts and aluminum. Indian exports to New Zealand include pharmaceuticals, mechanical machinery, made up textile articles, pearls, precious stones and metals.
“The India-New Zealand FTA negotiations aim to achieve balanced outcomes that enhance supply chain integration and improve market access. This milestone reflects a shared vision for a stronger economic partnership, fostering resilience and prosperity,” a commerce ministry statement said on Sunday.
India and New Zealand share a longstanding partnership founded on shared democratic values, strong people-to-people ties, and economic complementarities. Both countries have continuously worked towards building their bilateral relationship encompassing trade and investment, it said. India and New Zealand, a key partner in the Oceania region, have cordial and friendly relations rooted in the linkages of Commonwealth and have bilateral relations since 1952. New Zealand identified India as a priority country in its “Opening Doors to India” policy notified in October 2011, which it again reiterated in 2015.
Indian firms, particularly IT companies, are invested in New Zealand. Bank of India, Bank of Baroda and New India Assurance have commercial operations in the country. “Indian IT major HCL has opened a delivery centre in Hamilton primarily to service Fonterra, one of world’s biggest dairy cooperatives. Similarly, Mahindra Motors, Tech Mahindra Ltd, Infosys, Dr. Reddy Laboratories and Royal Enfield Motors have presence in the country,” one official said who did not wish to be named.