India–New Zealand FTA Talks Advance as Piyush Goyal, Todd McClay Meet in Mumbai

Both Ministers acknowledged that the most recent round of FTA negotiations yielded substantive progress, with several areas witnessing closure or near-finalization.

 

India and New Zealand moved a significant step closer toward finalizing a comprehensive Free Trade Agreement (FTA) as Union Minister of Commerce & Industry, Shri Piyush Goyal, held a high-level bilateral meeting with New Zealand’s Minister for Trade, Hon. Todd McClay, in Mumbai. The meeting marked one of the most productive rounds of discussions so far, reinforcing the intent of both nations to build a modern, mutually beneficial trade partnership.

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Meaningful Breakthroughs in FTA Negotiations

Both Ministers acknowledged that the most recent round of FTA negotiations yielded substantive progress, with several areas witnessing closure or near-finalization. These breakthroughs have strengthened optimism on both sides for an early, balanced, and commercially meaningful conclusion of the agreement.

The discussions focused on convergence across critical domains such as:

• Trade in goods

• Trade in services

• Investment facilitation

• Market access frameworks

• Regulatory transparency and standards

• Customs cooperation

• Intellectual property and innovation linkages

• Digital trade and emerging technology collaboration

Officials from both delegations noted that the shared understanding developed in this round has significantly narrowed gaps between negotiating positions.

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Bilateral Trade Reaches USD 1.3 Billion — A 49% Surge

Shri Piyush Goyal and Minister McClay reviewed bilateral trade trends and highlighted the rapid expansion of commerce between the two countries. In FY 2024–25, India–New Zealand merchandise trade reached USD 1.3 billion, marking a strong 49% growth, signalling enhanced demand, better connectivity, and expanding business partnerships.

New Zealand’s major exports to India include:

• Dairy products

• Wood and forest products

• Mineral resources

• Wool and textile inputs

• Fruits and agricultural commodities

India’s key exports to New Zealand include:

• Pharmaceuticals

• Engineering goods

• Machinery and auto components

• IT services

• Gems and jewellery

• Processed foods

• Apparel and textiles

Given this rapidly expanding base, both Ministers stressed that an FTA could unlock far greater trade potential and foster new economic synergies.

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Toward a Balanced, Forward-Looking Trade Partnership

The Ministers underscored that the objective of the ongoing negotiations is to craft a well-balanced, fair, and future-ready FTA that benefits consumers, businesses, and workers in both nations.

Key Strategic Benefits Expected from the FTA:

• Deeper market access for goods and services

• Enhanced investment flows in technology, agriculture, food processing, renewable energy, and manufacturing

• Stronger supply-chain resilience through diversified sourcing

• Greater regulatory certainty for exporters and investors

• Boost to services trade, especially in IT, education, healthcare, tourism, and fintech

• New pathways for innovation and technical cooperation

• Improved connectivity for SMEs and startups

Both Ministers agreed that the FTA holds the potential to become a landmark agreement for India–New Zealand ties, expanding collaboration far beyond merchandise trade alone.

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Strong Political Will and Constructive Momentum

Shri Piyush Goyal reaffirmed India’s commitment to building a high-quality, modern, and broad-based economic partnership with New Zealand. Minister McClay echoed this sentiment, noting that the current phase of negotiations reflects “strong political will” from both governments.

The Ministers committed to:

• Maintaining momentum in the next negotiation rounds

• Accelerating technical-level discussions

• Resolving pending issues pragmatically

• Ensuring a balanced outcome for sensitive sectors

They expressed confidence that the agreement could be finalised in the near future, especially given the constructive spirit and alignment emerging between both teams.

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Strengthening a Long-Term Strategic Relationship

Beyond trade, the Ministers discussed the broader India–New Zealand partnership, including cooperation in:

• Digital public infrastructure

• Education and skill development

• Agritech and food processing

• Climate resilience and sustainability

• Innovation ecosystems

• People-to-people ties and mobility

Both sides reiterated that an FTA would serve as a catalyst for deeper and more diversified bilateral engagement, helping create new opportunities for businesses, students, researchers, and innovators.

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Looking Ahead

As India and New Zealand prepare for the next round of negotiations, there is strong optimism that the FTA will soon move toward formal conclusion. The Mumbai meeting reaffirmed a shared ambition: to build a partnership rooted in transparency, trust, economic opportunity, and shared prosperity.