India, New Zealand resume free trade agreement talks after 10-year hiatus

India and New Zealand have officially resumed negotiations on a Free Trade Agreement (FTA) after talks stalled nearly a decade ago. The decision was announced on Sunday following discussions between India’s Commerce and Industry Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay.

The negotiations, which originally began in April 2010 under the Comprehensive Economic Cooperation Agreement (CECA), were aimed at enhancing trade in goods, services, and investment. However, after nine rounds of discussions, talks were suspended in 2015 due to unresolved differences in trade policies and market access concerns.

The resumption of talks coincides with New Zealand Prime Minister Christopher Luxon’s four-day visit to India from March 16. Both nations have expressed optimism about forging a "comprehensive and mutually beneficial" agreement that will strengthen economic ties and improve supply chain integration.

India and New Zealand have long been important trade partners, with bilateral trade standing at approximately USD 2.5 billion. While India primarily exports pharmaceuticals, textiles, and engineering goods, New Zealand is a major supplier of dairy products, wood, and horticultural items. The negotiations aim to address market access barriers and enhance cooperation in critical sectors like technology, agriculture, and clean energy.

Commerce ministry officials emphasized that the India-New Zealand FTA will focus on balanced outcomes, ensuring that both countries benefit from reduced tariffs, improved investment flows, and enhanced business collaborations. The agreement could also open doors for Indian IT services in New Zealand, while offering Kiwi exporters greater access to Indian markets.

As negotiations progress, trade experts anticipate discussions around New Zealand’s dairy exports, a sensitive issue for India, which has a strong domestic dairy industry. Meanwhile, India is likely to push for easier work visa policies for professionals, fostering stronger people-to-people connections. The next round of talks is expected in the coming months.