New Delhi— India and New Zealand are moving closer to a Free Trade Agreement (FTA), with both sides emphasizing that the deal must be fair, balanced, and beneficial for citizens. New Zealand’s Minister for Trade and Investment Todd McClay said on Wednesday that negotiations have advanced significantly and reflected the growing strength of the bilateral partnership.
Speaking after a high-level meeting attended by Union Minister Piyush Goyal and New Zealand Prime Minister Christopher Luxon, McClay said that the two nations were “committed to making sure the deal is good for the citizens of both our countries.” He added, “There’s been an unprecedented number of negotiating rounds so far. We’re optimistic but also careful to get it right.”
McClay highlighted that while challenges are natural in trade discussions, the approach taken by both governments has been solution-oriented. “What Minister Goyal and I have agreed is that rather than our negotiators arguing, we will find solutions together—and so far, we’ve made great progress,” he said.
He underlined that New Zealand views its relationship with India as a strategic priority. “When Christopher Luxon was in opposition, he said that if we formed a government, our relationship with India would be a key priority. Over the last two years, we’ve seen that relationship grow rapidly — from trade and defense to people-to-people ties,” McClay noted.
Trade between the two nations has already shown growth, supported by an expanding list of bilateral agreements. During Luxon’s visit to India in March 2025, both countries signed 33 memoranda of understanding (MoUs) and agreements, including one between Air India and Air New Zealand to launch direct flights by 2028.
Drawing comparisons with New Zealand’s past partnerships, McClay recalled that its trade agreement with China had transformed economic ties. “When we signed a trade deal with China 20 years ago, it started with just a few billion dollars in trade. It’s now around USD 40 billion. The opportunities with India are similarly vast,” he said.
On the timeline for finalizing the FTA, McClay clarified, “We don’t discuss deadlines when negotiating a treaty. Every agreement happens at the right time.” Minister Goyal echoed this, saying, “There never has been a fixed time frame for any free trade agreement we have negotiated.
According to official data from Statistics New Zealand and India’s Ministry of Commerce, bilateral trade between the two countries reached USD 1.75 billion in 2023–24. New Zealand exported goods and services worth USD 0.84 billion to India, while importing USD 0.91 billion. India’s main exports to New Zealand include pharmaceuticals, machinery, textiles, and precious stones, whereas its key imports are wool, iron and steel, fruits, nuts, and aluminium.
