New Delhi: India and New Zealand are poised to formally announce the conclusion of a bilateral Free Trade Agreement (FTA) before the close of 2025. This landmark deal will mark India’s third major trade pact of the year, following successful agreements with the United Kingdom in July and Oman earlier this month.
Swift Progress and Strategic Convergence
A draft agreement is reportedly finalized following intense negotiations. The momentum accelerated after the fourth round of talks in Rotorua last month and a high-level meeting between Union Commerce Minister Piyush Goyal and New Zealand’s Trade Minister Todd McClay in New Delhi on December 12.
The two nations have moved with remarkable speed, completing four formal rounds of negotiations since the discussions were officially launched on March 16, 2025, during Prime Minister Christopher Luxon’s visit to India.
Key Highlights of the Proposed Deal
The agreement is designed to be comprehensive while protecting the domestic interests of both nations:
- Agricultural Safeguards: India will continue to protect its subsistence farmers and the sensitive dairy sector.
- Market Concessions: India may offer concessions on non-competing imports such as timber and kiwi fruits.
- Mutual Recognition Agreements (MRAs): The deal is expected to include MRAs to help Indian pharmaceuticals, organic products, and professional services enter the New Zealand market by recognizing quality standards and qualifications.
- Trade Diversification: The pact aims to reduce dependence on specific geographies and unlock potential in renewable energy, education, and food processing.
Growing Economic Synergy
Bilateral merchandise trade between the two countries reached $1.3 billion in 2024-25, a significant 49% year-on-year increase. Beyond goods, the leaders have also explored cooperation in the digital payments sector and deeper supply chain integration.
The formal announcement is expected early this week, signaling a strengthened economic partnership and a more conducive environment for cross-border investments.