What happened?
On July 25, 2025, the second round of negotiations for the India-New Zealand Free Trade Agreement (FTA) wrapped up in New Delhi, marking significant progress in strengthening bilateral trade and economic ties. The talks, held from July 14 to 25, advanced discussions on goods and services trade, investment, customs procedures, technical barriers, and economic cooperation. Both sides expressed a strong commitment to concluding a balanced and forward-looking agreement. The FTA process was launched in March during the visit of New Zealand’s Prime Minister Christopher Luxon, with India’s Commerce Minister Piyush Goyal and New Zealand’s Trade Minister Todd McClay leading the talks. The third round of negotiations is scheduled for September 2025 in New Zealand, with virtual meetings planned to maintain momentum.
Why it matters to India
India’s bilateral merchandise trade with New Zealand reached USD 1.3 billion in FY 2024-25, growing nearly 49% from the previous year, reflecting expanding economic engagement. The FTA aims to boost trade flows, investment, and supply chain resilience while creating a stable environment for businesses. This agreement aligns with India’s broader strategy to deepen partnerships with key economies and diversify trade relationships.