First Round of India–New Zealand FTA Negotiations Successfully Concludes in New Delhi

The first round of negotiations for the India–New Zealand Free Trade Agreement (FTA) concluded successfully in New Delhi on May 9, 2025. The negotiations, which took place from May 5 to 9, 2025, are part of the ongoing efforts to expand bilateral trade and investment ties between the two countries. This FTA is expected to further enhance economic cooperation, reduce trade barriers, and create a predictable environment for businesses, which aligns with India’s increasing focus on strengthening its global trade partnerships.

Why in News?

The successful conclusion of the first round of the India–New Zealand Free Trade Agreement negotiations marks a major step forward in the economic partnership between both nations. This negotiation comes after a series of virtual discussions and builds on the commitment made during the visit of New Zealand’s Prime Minister Christopher Luxon to India in March 2025.

Aim of the India–New Zealand Free Trade Agreement (FTA)

• To create a mutually beneficial, balanced, and fair trade framework.
• To boost bilateral trade and economic cooperation in a wide range of sectors.
• To improve integration across global supply chains, enhancing market access for businesses in both countries.

Objectives of the FTA

• Expand trade in goods and services between India and New Zealand.
• Facilitate trade by simplifying customs and trade regulations.
• Foster economic cooperation in sectors such as agriculture, technology, and services.
• Create an enabling environment for investments between both countries.

Key Developments and Achievements

• The negotiations, which were initiated with virtual discussions, culminated in a productive in-person meeting held in New Delhi.
• Discussions covered several areas, including trade facilitation, services, and economic cooperation in mutually beneficial sectors.
• Total merchandise trade between India and New Zealand reached USD 1.3 billion in FY 2024–25, reflecting a robust 48.6% growth over the previous year.
• Both countries aim to finalize the FTA by the end of 2025, with the next round of talks scheduled for July 2025.

Background of the India–New Zealand Economic Partnership

• India and New Zealand have a growing economic relationship, with increasing trade and investments over the years.
• The FTA was first launched in March 2025 during a meeting between Indian Commerce and Industry Minister Piyush Goyal and New Zealand’s Trade Minister Todd McClay.
• The agreement aims to further deepen economic ties and improve cooperation in sectors such as technology, services, and trade facilitation.

Significance of the FTA

• The agreement will help both countries address global economic challenges by fostering a more resilient and diversified trade relationship.
• By enhancing supply chain integration, the FTA will create new opportunities for businesses on both sides.
• It will enable smoother market access for Indian exporters to New Zealand and vice versa, boosting trade in key sectors.

Upcoming Rounds of Negotiation

• The next round of negotiations is scheduled for July 2025, where both parties will continue discussing key areas and work towards finalizing the FTA.
• The government’s goal is to conclude the FTA by the end of the year, which will pave the way for stronger economic collaboration.