The Indian government is set to finalize a free trade agreement (FTA) with New Zealand following multiple negotiation rounds that began in March this year.
According to sources from CNBC-TV18, the agreement will be signed “anytime now,” as approval from the Union Cabinet has been obtained to enhance bilateral trade and investment.
During New Zealand Prime Minister Christopher Luxon’s visit to India in March 2025, both leaders emphasized the importance of strengthening trade and investment ties.
PM Modi highlighted the potential for collaboration and investment in sectors such as dairy, food processing, pharmaceuticals, renewable energy, and critical minerals.
“Joint efforts will be made in Forestry and Horticulture. I am confident that the substantial business delegation accompanying the Prime Minister will seize the opportunity to explore new avenues in India,” PM Modi commented during the visit.
However, the landscape for India has shifted significantly in the months following the imposition of a 50% tariff by the US that took effect in August, prompting India to seek diverse export markets more proactively.
This week, PM Modi concluded an ambitious trade agreement with Oman during a two-day visit, where Oman committed to zero duties on approximately 98% of tariff lines, potentially enhancing trade in gems, textiles, pharmaceuticals, and automobiles.
In July, India secured an FTA with the UK, projected to boost bilateral trade by $34 billion annually from 2040 onwards.
Trade relations with New Zealand
India mainly imports wool, iron and steel, fruits and nuts, and aluminum from New Zealand, while it exports pharmaceutical products, mechanical machinery, textile articles, as well as pearls, precious stones, and metals.
In the fiscal year 2023-24, trade between New Zealand and India amounted to $1.75 billion, which includes $0.84 billion in exports and $0.91 billion in imports.
PM Modi also announced that the two nations aim to fortify defense and security collaborations, outlining plans to develop a roadmap for joint efforts in training, port visits, and the defense sector overall.
“Our navies are collaborating in the Combined Task Force-150 for maritime security in the Indian Ocean,” Modi stated at that time.
