India–New Zealand Seal Free Trade Deal

Prime Minister Narendra Modi on Monday announced that India and New Zealand have concluded negotiations on a bilateral free trade agreement (FTA), marking India’s third such pact in 2025 after agreements with the United Kingdom in July and Oman on December 18, people familiar with the matter said.

Negotiators from both sides resolved nearly all outstanding issues after extensive physical and virtual engagements, including the fourth formal round of talks held in Rotorua early last month during Commerce Minister Piyush Goyal’s visit to New Zealand. New Zealand’s Trade and Investment Minister Todd McClay later visited New Delhi on December 12 and met Goyal to further advance the negotiations.

Officials said the FTA will remain comprehensive and balanced, delivering mutual benefits while respecting sensitivities on both sides. India will continue to protect its subsistence farmers and dairy sector, though it may offer limited concessions on non-competing products such as kiwifruit and timber.

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Pact to protect farmers, expand market access and diversify India’s exports

The agreement will also help Indian exporters expand shipments of organic products, pharmaceuticals, and professional services to New Zealand through mutual recognition agreements (MRAs), which allow both countries to recognise each other’s professional qualifications and quality standards.

People aware of the discussions said the third FTA signed in 2025 will support trade diversification for Indian exporters and reduce dependence on any single region. While they declined to share specific details, they said the governments will announce the pact with the aim of lowering trade barriers and improving the bilateral business and investment climate.

India’s merchandise trade with New Zealand reached $1.3 billion in 2024–25, reflecting nearly 49% year-on-year growth, according to a commerce ministry statement issued on November 8. Officials expect the FTA to unlock fresh opportunities in agriculture, food processing, renewable energy, pharmaceuticals, education, and services.

India and New Zealand completed four formal negotiation rounds after launching FTA talks on March 16, 2025, with both sides targeting balanced outcomes to strengthen supply chains and expand market access.

The negotiations gained momentum after Prime Minister Modi met New Zealand Prime Minister Christopher Luxon during the latter’s five-day visit to India in March. In a joint statement on March 17, the two leaders welcomed the launch of FTA talks and agreed to pursue a balanced, ambitious, and mutually beneficial trade agreement, while also exploring cooperation in digital payments.

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