India and New Zealand Progress in Free Trade Agreement Talks

India and New Zealand have made significant strides in their negotiations for a proposed Free Trade Agreement (FTA), concluding the third round of talks in Queenstown on October 6, 2023. This meeting reflects a mutual commitment to enhance economic cooperation and aims to finalize a comprehensive agreement that will bolster trade and investment ties between the two nations.

During the latest discussions, officials from both countries successfully finalized several chapters of the FTA and advanced crucial elements of the agreement. The Ministry of Commerce and Industry of India emphasized that these negotiations highlight the shared dedication to strengthen bilateral relations and expedite the completion of the FTA.

Next Steps in Negotiations

The next round of negotiations is scheduled to take place in New Delhi on October 13-14, 2023. In preparation for this meeting, inter-sessional engagements will be conducted to maintain the forward momentum established thus far. The process began in March 2025, following a pivotal meeting between India’s Commerce and Industry Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay. Since then, the first round of discussions occurred in May, followed by a second round in July.

The trade relationship between India and New Zealand has witnessed remarkable growth, with bilateral trade reaching USD 1.3 billion in the fiscal year 2024-25, marking a substantial increase of nearly 49 percent compared to the previous year. This trend suggests that the FTA could significantly enhance trade flows, improve supply chain resilience, attract foreign investments, and create a more predictable business environment for companies operating in both countries.

Broader Diplomatic Engagements

In conjunction with the trade negotiations, India and New Zealand have been actively engaging through various diplomatic channels. Earlier this month, officials participated in Foreign Office Consultations, where they reviewed cooperative efforts in areas such as defence, agriculture, education, climate change, and people-to-people exchanges. These discussions included an assessment of commitments made during New Zealand Prime Minister Christopher Luxon‘s visit to India in March.

The ongoing dialogue underscores the importance both nations place on fostering a robust partnership that transcends mere economic agreements. As India and New Zealand continue to work towards finalizing the FTA, the potential benefits for both economies highlight the strategic nature of their relationship in an increasingly interconnected global market.