India–New Zealand FTA Talks Gain Momentum in Mumbai
In a significant development for India’s global trade agenda, Union Minister of Commerce and Industry Shri Piyush Goyal held a high-level bilateral meeting with New Zealand’s Minister for Trade Todd McClay in Mumbai on Monday. The meeting marked a crucial step toward finalising the long-discussed India–New Zealand Free Trade Agreement (FTA), as both sides reported substantial convergence and meaningful progress across key chapters.
The discussions, held on the sidelines of growing Indo-Pacific economic engagement, focused on building a balanced, forward-looking, and commercially beneficial FTA that supports long-term partnership between the two democratic economies. Officials described the meeting as “constructive, outcome-driven, and aligned with the objective of securing an early conclusion.”
Substantive Progress Across Key Trade Disciplines
According to official inputs, India and New Zealand achieved closure on several important elements during the recent round of negotiations. The Ministers reaffirmed that a shared understanding now exists on the pathways required to bring remaining areas to a mutually satisfactory conclusion in the coming rounds.
The discussions reportedly covered a wide range of trade disciplines, including market access for goods, services mobility, digital trade, intellectual property, customs cooperation, and dispute settlement frameworks. Both sides emphasised the need for an agreement that balances ambition with pragmatism while addressing sensitivities of exporters, farmers, and small businesses.
Minister Goyal briefed New Zealand’s delegation on India’s efforts to enhance the ease of doing business, strengthen digital public infrastructure, and modernise customs processes, all of which would help businesses from both countries benefit from a predictable trade environment.
Bilateral Trade Grows Nearly 49% in FY 2024–25
The meeting also highlighted the rapid expansion of bilateral merchandise trade, which reached USD 1.3 billion in FY 2024–25, marking a remarkable 49% growth from the previous year. The robust surge reflects a renewed push by industry and exporters on both sides to diversify trade channels and explore new product corridors.
New Zealand has traditionally exported dairy, wood, and agricultural commodities to India, while India’s exports include pharmaceuticals, textiles, engineering goods, gems and jewellery, and information technology services. Both Ministers agreed that a comprehensive FTA could diversify this trade basket further and unlock new areas such as innovation partnerships, digital collaboration, and renewable technologies.
Focus on Investment, Supply Chains, and Business Mobility
The Ministers underlined that a well-rounded FTA must go beyond tariff cuts by improving investment flows, enhancing business mobility, and strengthening resilient supply chains. They noted that a predictable and transparent trade architecture would support enterprises in both countries, particularly small and medium businesses looking to scale globally.
New Zealand expressed strong interest in leveraging India’s expanding manufacturing ecosystem, particularly in sectors such as food processing, clean energy, pharmaceuticals, advanced materials, and engineering goods. India, in turn, reaffirmed its commitment to expanding cooperation in science, technology, and skill development.
Commitment to an Early and Balanced FTA
Both Ministers reiterated their shared vision for an ambitious, modern, and balanced FTA that supports growth across a wide spectrum of sectors. They expressed satisfaction with the constructive momentum and agreed to intensify engagement in the coming weeks to expedite the remaining discussions.
Minister Goyal emphasised India’s commitment to agreements that deliver equitable outcomes for farmers, workers, and industries, while Minister McClay affirmed New Zealand’s readiness to work toward a comprehensive and mutually beneficial settlement.
