The proposed India-New Zealand free trade agreement will increase the potential for bilateral trade and investment and mutual cooperation shall be encouraged in sectors such as dairy, food processing and pharmaceuticals, Prime Minister Narendra Modi has said.
“We have decided to begin discussions for a mutually beneficial FTA between the two countries. This shall increase the potential for bilateral trade and investment,” Modi said in his media statement following his bilateral meeting with New Zealand Prime Minister Christopher Luxon on Monday.
The two leaders agreed, within the context of the trade agreement negotiations, to also launch negotiations on an arrangement facilitating the mobility of professionals and skilled workers between the two countries, while also addressing the issue of irregular migration, according to a joint statement.
Union Minister of Commerce and Industry Piyush Goyal meets New Zealand Trade Minister Todd McClay, in New Delhi on March 16, 2025
India and New Zealand to resume FTA negotiations after a decade’s lull
Defence tie-up
Both leaders also welcomed the signing of the India-New Zealand memorandum of understanding for defence cooperation. “This will further strengthen bilateral defence cooperation and establish regular bilateral defence engagement,” the statement noted.
The leaders agreed to discussions for early implementation of cooperation in the digital payments sector, it added.
Apart from dairy, food processing, and pharmaceuticals, that the PM mentioned as key areas for mutual cooperation, the two sides will also give priority to renewable energy, critical minerals, forestry and horticulture.
Both Prime Ministers agreed that there exists great potential to further strengthen the growing education and community links between India and New Zealand. “They encouraged academic institutions of both countries to build future-oriented partnerships focused on areas of mutual interest including in areas of science, innovation, new and emerging technologies,” the statement noted.
FTA talks
India and New Zealand are resuming FTA talks after almost a decade of the previous negotiations getting suspended due to disagreement over keeping dairy out of the pact, something New Delhi insisted upon.
The re-launch of FTA negotiations during Luxon’s five-day visit to India is significant also because it comes at a time when the world is trying to brace against US President Donald Trump’s tariff tirade.
New Zealand was India’s 87th largest trading partner in FY 24 with exports to the country at $538 million and imports at $335 million. While India’s exports mostly comprise pharmaceutical products, mineral fuels, textiles articles and machinery, its imports include mineral fuels, wood, iron and steel and kiwi fruit.
Source : thehindubusinessline
