India will keep defending its dairy industry and peasant farmers. On non-competing goods like lumber and kiwi fruits, it might make certain concessions.
According to persons familiar with the situation, Prime Minister Narendra Modi announced the signing of a bilateral free trade agreement (FTA) between India and New Zealand on Monday. This is the third FTA in 2025, following agreements with the United Kingdom in July and Oman on December 18.
Following the fourth formal round of negotiations, which took place in Rotorua early last month during Union commerce minister Piyush Goyal's visit to New Zealand, the two sides had reached consensus on nearly all topics through extended in-person and virtual exchanges, they added, asking anonymity.
They stated that an announcement of the planned FTA is anticipated early this week and that a draft agreement is available. They stated that Goyal met with Todd McClay, New Zealand's minister of trade and investment, while he was in New Delhi on December 12 to discuss ways to move the FTA talks forward.
According to them, the agreement is anticipated to be thorough and well-balanced, guaranteeing benefits for both sides while honoring their respective sensitivities. They claim that India will keep defending its dairy industry and peasant farmers. On non-competing goods like lumber and kiwi fruits, however, it might make some compromises.
Additionally, through mutual recognition agreements (MRAs), it is anticipated that the deal may assist India in supplying New Zealand with its products, including organic commodities, pharmaceuticals, and professional services. In free trade agreements, MRAs serve as a framework for both parties to acknowledge each other's professional credentials and quality standards.
According to those previously mentioned, the third free trade agreement (FTA) in 2025 will assist Indian exporters in diversifying their trade and lessening their reliance on specific regions. However, they refused to provide any particular information about the type and extent of the planned free trade agreement. However, they stated that it will be announced with the intention of lowering trade barriers and fostering a more favorable bilateral environment for investors and businesses.
According to a statement released on November 8 by the commerce ministry, India's bilateral merchandise trade with New Zealand was $1.3 billion in 2024–2025, representing a year-over-year gain of almost 49%. It stated that further potential in industries including agriculture, food processing, renewable energy, medicines, education, and services will be unlocked by the proposed FTA, opening up new corporate and consumer options.
Since the FTA talks began on March 16, 2025, the India-New Zealand Free Trade Agreement has swiftly concluded four rounds of formal negotiations. On that day, they reaffirmed that the goal of the FTA talks between India and New Zealand was to reach fair results that would strengthen market access and supply chain integration.
New Zealand and India The revived momentum in bilateral ties following Prime Minister Narendra Modi's meeting with New Zealand Prime Minister Christopher Luxon during the latter's five-day visit to India from March 16–20, 2025, has served as the foundation for FTA talks. In order to accomplish greater economic integration, the two PMs "welcomed the launch of FTA negotiations for a balanced, ambitious, comprehensive, and mutually beneficial trade agreement," according to a joint statement released on March 17.
"A comprehensive trade agreement offers a significant opportunity to enhance trade and economic cooperation," the leaders agreed. A bilateral trade agreement may promote mutually beneficial trade and investment growth, guaranteeing equitable advantages and complementarities for both sides, by utilizing each nation's strengths, addressing their respective concerns, and tackling problems, it stated.
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