India-New Zealand FTA Talks in Final Stage: All You Need to Know About the Long-Pending Pact

Mumbai | November 12

After more than a decade of on-and-off negotiations, India and New Zealand are close to finalising a free-trade agreement (FTA) that could open new avenues for cooperation across goods, services, education, and technology.

Officials confirmed that discussions are now in the final phase, with both sides seeking a “balanced and mutually beneficial” outcome within weeks.

Goyal’s Auckland Visit Brings Renewed Momentum

Commerce and Industry Minister Piyush Goyal’s recent visit to Auckland has provided fresh momentum to the negotiations. He met New Zealand’s top leadership, business representatives, and members of the Indian diaspora to push for faster progress.
New Zealand’s Trade Minister Todd McClay is expected to visit India shortly to complete the next round of talks and finalise the pending issues.

This marks the fourth formal round of discussions since the negotiations were revived earlier this year, focusing on market access, services, investment, and technology collaboration.

What We Know So Far

Here’s a quick overview of where the India–New Zealand FTA currently stands:

• The talks are almost complete, with only minor policy alignments pending.
• Negotiations resumed in March 2025 after being stalled for nearly a decade.
• The FTA aims to liberalise trade in goods, services, and investments, while supporting innovation-driven sectors like education, digital tech, and tourism.
• Both countries have agreed to work toward an “early conclusion of a balanced and comprehensive agreement.”
• The deal could also simplify visa processes and improve people-to-people connectivity through direct air links.

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A Decade-Old Pact Back on Track

The two countries first began negotiating a Comprehensive Economic Cooperation Agreement (CECA) in 2010. However, discussions stalled after nine rounds in 2015.
Talks were formally relaunched in March 2025, underlining New Delhi’s renewed focus on expanding its trade footprint in the Indo-Pacific region.

Officials said that the text of the agreement is nearly ready, pending a few regulatory clarifications.

Trade Snapshot and Growth Potential

India’s bilateral trade with New Zealand stood at $1.3 billion in FY 2024–25, up 49% year-on-year, as per Commerce Ministry data.
India mainly exports pharmaceuticals, textiles, machinery, and refined petroleum, while New Zealand’s key exports include dairy, meat, timber, and minerals.

With New Zealand’s average import tariff at just 2.3%, the FTA could give Indian exporters significant access to a high-value, stable market.

Opportunities Beyond Trade

The proposed pact also covers education, tourism, and digital cooperation, areas where both countries already share strong ties.
India is New Zealand’s second-largest source of international students, and increased direct air routes are expected to boost tourism and business travel.

The large Indian diaspora of over 300,000 in New Zealand has welcomed the progress, calling it a step towards stronger economic and cultural engagement.

For India, this FTA complements its broader strategy of diversifying export markets and deepening partnerships with democratic economies in the Asia-Pacific. For New Zealand, the deal offers an opportunity to reduce reliance on China and Australia and expand trade with one of the world’s fastest-growing large economies.

Both sides have agreed to maintain transparency, safeguard sensitive sectors, and prioritise sustainable, long-term growth through the partnership.

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