India-New Zealand FTA Talks

India and New Zealand concluded the first round of negotiations for a proposed Free Trade Agreement (FTA).

Key-highlights

• India and New Zealand's bilateral trade relationship has seen a sharp upward trajectory in recent years with merchandise trade between the two countries reaching USD1.3 billion in 2024–25, a growth of 48.6 percent on-year.
• The FTA is expected to further elevate trade and investment potential, improve supply chain integration, and foster a predictable and transformative trading environment for businesses on both sides.
• Key-items for trade:
  • Exports to New Zealand include clothing, fabrics, and home textiles; medicines and medical supplies; refined petrol; agricultural equipment and machinery such as tractors and irrigation tools; auto; iron and steel; paper products; electronics; shrimps; diamonds; and basmati rice.
  • Imports from New Zealand: Agricultural goods, minerals, apples, kiwifruit, meat products such as lamb, mutton, milk albumin, lactose syrup, coking coal, logs and sawn timber, wool, and scrap metals
• India has recently agreed upon a FTA with UK and is currently negotiating trade deals with a slew of nations and blocs including European Union, United States and Oman.

Why India and New Zealand Matter to Each Other?

• India's Importance for New Zealand
  • Large Market: India’s 1.4 billion population and rising middle class offer strong demand for dairy, meat, and wine exports.
  • Skilled Manpower: India is NZ’s largest source of skilled migrants and 2nd-largest source of international students.
  • Digital Ecosystem: India’s 880 million internet users offer opportunities for digital services, AI, and fintech.
  • Strategic Alignment: India's Indo-Pacific role supports NZ's regional stability
• New Zealand's Importance for India
  • Agricultural Modernization: Expertise in dairy, food logistics, and horticulture supports Indian farm reforms.
  • Education & Skill Development: Offers vocational training and high-quality tertiary education.
  • Climate Tech Partner: NZ firms feature in HolonIQ Indo-Pacific Climate Tech 100—relevant to India's green goals.
  • Maritime & Defence: Potential buyer of Indian radars, patrol vessels, aligning with NZ’s Pacific maritime concerns.