India and New Zealand recently discussed ways to fast-track negotiations for a proposed Free Trade Agreement (FTA) between the two countries. New Zealand Trade Minister Todd McClay met with Indian Commerce Minister Piyush Goyal to review the progress of the talks, which formally began in March 2025. So far, four rounds of negotiations have been completed, aiming to build on a bilateral trade relationship that grew by 49% last year.
The proposed FTA is expected to boost trade flows, promote investment linkages, and strengthen supply chain resilience between the two nations. India’s key exports to New Zealand include clothing, pharmaceuticals, and machinery, while New Zealand primarily exports agricultural goods like apples and kiwifruit, along with coking coal and logs. Despite previous attempts at a trade deal stalling in 2015, both sides now express a strong desire for a mutually beneficial agreement.
The discussions highlighted that New Zealand’s average import tariff is currently very low at just 2.3 percent. Minister Piyush Goyal noted that the talks explored key aspects of the deal to advance negotiations for the benefit of both countries. This move is part of India’s broader strategy to diversify its export basket and secure predictable frameworks for businesses amidst global economic shifts.