India – New Zealand Announce Launch of FTA Negotiations

India and New Zealand have officially launched negotiations for a “comprehensive and mutually beneficial” Free Trade Agreement (FTA), marking a significant step in their bilateral relations. This will be India’s second FTA in the Oceania region, after the India-Australia Economic Cooperation and Trade Agreement (ECTA), signed in April 2022. The FTA aims to enhance supply chain integration, expand market access, and foster economic resilience and prosperity for both nations.

Key Highlights

Official Announcement

• The FTA negotiations were announced during a meeting between Indian Commerce Minister Piyush Goyal and New Zealand Trade Minister Todd McClay on March 16, 2025, in New Delhi.

Strategic Timing

• The announcement came ahead of the bilateral meeting between Indian PM Narendra Modi and New Zealand PM Christopher Luxon, who arrived in India for his first official visit.

Current Trade Scenario

• Bilateral trade crossed $1 billion between April 2024 and January 2025.
• India’s exports to New Zealand in 2023-24 were $538 million, while imports stood at $335 million, with a $203 million trade surplus in India’s favor.
• In 2024-25 (up to December 31), exports grew by 21.49% to $496 million, while imports surged by 78.72% to $463 million, narrowing the trade gap to $33 million.

Key Imports & Exports

• India imports from New Zealand: Wool, iron & steel, fruits & nuts, aluminum.
• India exports to New Zealand: Pharmaceuticals, machinery, textiles, pearls, precious stones, and metals.

Indian Business Presence in New Zealand

• IT giants like HCL, Infosys, and Tech Mahindra have established operations.
• Bank of India, Bank of Baroda, and New India Assurance also operate in the country.

Objective of FTA

• Achieve balanced trade outcomes.
• Strengthen supply chain integration.
• Expand market access for businesses and consumers.
• Foster economic resilience and prosperity.