India-NZ FTA Talks Make Strong Headway in Second Round, Eyes Sept. Progress

The FTA negotiations were formally launched on March 16, 2025, during the visit of New Zealand’s Minister for Trade and Investment, Mr. Todd McClay, to India.

In a key development that underscores India’s expanding global trade footprint, the Second Round of negotiations for the proposed India–New Zealand Free Trade Agreement (FTA) concluded successfully on July 25, 2025, in New Delhi. This milestone marks a significant step toward building a comprehensive and mutually beneficial trade architecture between the two Indo-Pacific democracies.

Held from July 14 to July 25, the second round saw in-depth, technical-level discussions across a broad range of sectors, reinforcing the vision articulated by Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon during their bilateral meeting in March 2025.

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Foundation of Strategic Trade Dialogue

The FTA negotiations were formally launched on March 16, 2025, during the visit of New Zealand’s Minister for Trade and Investment, Mr. Todd McClay, to India. The discussions were hosted by India’s Union Minister of Commerce and Industry, Shri Piyush Goyal, who emphasized India’s willingness to engage in progressive, balanced, and equitable trade frameworks with trusted partners.

The initial round of negotiations took place in May 2025, also in New Delhi, where working groups began the groundwork on a framework for bilateral cooperation in goods, services, investments, and trade facilitation.

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Significant Progress Across Key Trade Domains

The just-concluded second round brought meaningful progress in several critical areas, including:

• Trade in Goods and Services – Enhanced proposals for tariff reduction, sectoral priorities, and regulatory easing

• Investment – Deliberations on investment protection, facilitation, and dispute resolution mechanisms

• Rules of Origin (ROO) – Preliminary convergence on product-specific rules and origin certification norms

• Customs Procedures and Trade Facilitation – Discussions on digitalisation, faster clearance, and risk-based inspections

• Technical Barriers to Trade (TBT) – Negotiations on aligning standards and mutual recognition

• Sanitary and Phytosanitary (SPS) Measures – Emphasis on science-based regulations and agri-trade protocols

• Economic Cooperation – Identification of focus sectors including agri-tech, education, renewable energy, and digital trade

Both sides expressed mutual enthusiasm to accelerate convergence and agreed to maintain constructive momentum through intersessional virtual meetings before the Third Round, scheduled to be held in New Zealand in September 2025.

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Bilateral Trade on the Rise

India–New Zealand economic relations have shown a positive growth trajectory, particularly in recent years. Bilateral merchandise trade reached USD 1.3 billion in FY 2024–25, registering a robust 48.6% growth over the previous year. Major Indian exports to New Zealand include pharmaceuticals, auto components, machinery, and textiles, while imports include wool, dairy products, fruits, and wood pulp.

The FTA is expected to:

• Enhance market access for Indian exporters in the Pacific

• Facilitate smoother investment flows and business mobility

• Strengthen supply chain resilience, particularly in food security and health products

• Create a predictable regulatory environment for cross-border trade

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Mutual Vision for a Future-Ready Partnership

Both India and New Zealand bring to the table complementary strengths—India’s large and growing consumer base and skilled workforce, and New Zealand’s expertise in agri-tech, environmental sustainability, and innovation. With a shared commitment to rules-based trade, the FTA is being positioned as a model agreement for next-generation partnerships that go beyond traditional tariff elimination.

“We are working toward a forward-looking and balanced FTA that benefits businesses and consumers in both countries,” said a senior Indian official from the Commerce Ministry. “The early rounds of discussion have set a positive tone for collaboration.”

Similarly, New Zealand’s delegation emphasized their desire to strengthen strategic trade alignment with India, one of the world’s fastest-growing major economies.

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Next Steps and Broader Strategic Context

With the third round of talks scheduled for September 2025 in New Zealand, both nations are preparing to finalize initial texts and converge on deliverables that can form the basis for a possible early harvest agreement, depending on the pace of progress.

The agreement also holds significance within the broader context of India’s Indo-Pacific engagement strategy, allowing for diversified and resilient partnerships amid global economic uncertainties.

As the world watches closely, the India–New Zealand FTA could soon emerge as a pivotal instrument to unlock trade, promote innovation, and drive inclusive prosperity for both economies.