India–New Zealand free trade talks enter crucial phase — Big breakthrough on the horizon?

This development builds on the shared commitment to deepen economic ties and guidance given by Prime Minister Narendra Modi during the visit of Christopher Luxon, Prime Minister of New Zealand in March 2025.

The FTA was launched during the meeting between Piyush Goyal, Minister of Commerce and Industry, Government of India, and Todd McClay, Minister for Trade and Investment, Government of New Zealand on March 16, 2025.

"Negotiations in this round are focusing on key areas, including Trade in Goods, Trade in Services, and Rules of Origin," read a government statement issued by the Indian government.

Both sides are working constructively to build on the progress achieved in earlier rounds, to reach convergence on outstanding issues and move towards the early conclusion of the FTA.

"India and New Zealand reiterated their commitment to developing a forward-looking and inclusive trade framework that supports sustainable growth and shared prosperity for both economies," the statement said.

In the year 2023-24 NZ exported US$ 0.84 billion of total goods and services to India and imported US$ 0.91 billion, representing a trade balance of US$-78.26 million and a total trade value of US$ 1.75 billion. 

This represented 1.4% of all exports of total goods and services in this time period and 1.4% of imports.

For trade in total goods and services India ranked 14 of 242 for highest export value, 15 of 241 for highest import value, and 13 of 244 for highest total trade value. India primarily imports wool, Iron & Steel, fruit & nuts and Aluminium from NZ.

Indian exports to NZ mostly are pharmaceuticals/medications, Mechanical Machinery, Made up textile articles and Pearls, Precious stones and Metals.

(Reporting by Manik Banerjee)