India and New Zealand have reinitiated discussions for a Free Trade Agreement (FTA) after a decade-long pause. The negotiations, which began on May 5, 2025, in New Delhi, aim to enhance bilateral trade and investment ties. This follows earlier efforts under the Comprehensive Economic Cooperation Agreement (CECA), which stalled after ten rounds in 2015.
One of the critical challenges in the talks is the tariff disparity. While New Zealand maintains an average import tariff of just 2.3%, India’s average tariff stands at 17.8%. New Zealand seeks greater access to India’s dairy market, a sensitive sector for India, while India is pushing for improved mobility of its skilled professionals and greater market access in IT and services.
Bilateral trade between the two nations reached USD 873.4 million in FY 2023-24. India’s key exports include pharmaceuticals, refined petroleum, textiles, and machinery, while imports from New Zealand primarily consist of agricultural goods, meat, and minerals. The renewed FTA aims to unlock significant business opportunities while addressing existing market access concerns.