Auckland, November 5: India and New Zealand today committed to fast-track their stalled Free Trade Agreement (FTA) as Union Minister Piyush Goyal and Trade Minister Todd McClay held high-level talks in Auckland, aiming to double bilateral trade within five years. Speaking on the ongoing India–New Zealand FTA negotiations, Goyal underscored that discussions were progressing with mutual respect and a shared commitment to achieving balanced outcomes.
The pledge came during the 4th round of FTA negotiations from November 3-7 November, which is one of the key highlights of the Indian Commerce minister’s visit to New Zealand. During a fireside chat at the India-New Zealand Business Forum, hosted by the Auckland Business Chamber Goyal underscored the immense potential for collaboration between India and New Zealand across key sectors, including maritime, forestry, sports, education, technology and tourism. Goyal is also being accompanied by one of the largest Indian business delegation to New Zealand during the visit.
While the two side continues to push the FTA, Agriculture and Dairy remains sticking point. Goyal reiterated that India will not compromise on sensitive areas like dairy and micro, small, and medium enterprises (MSMEs) in any FTA. He emphasized respecting mutual sensitivities, stating, “We consistently protect the interests of vulnerable sectors… we will not touch such issues.”
At a community event, also attended by Prime Minister of New Zealand, Christopher Luxon, Goyal lauded the immense hard work of the vibrant Indian diaspora Goyal expressed optimism about creating more “Successful Kiwi–Bharat Stories” as part of a shared vision for deeper collaboration across sectors.
and Trade Minister Todd McClay ant a Community event in Auckland, New Zealand
Prime Minister Luxon spoke of New Zealand’s strong support for India’s emergence as a global economic powerhouse, stating that India is on track to become the world’s third-largest economy.
The Prime Minister emphasized that the India–New Zealand relationship is built on mutual respect, fairness, and a shared vision for prosperity, describing the Indian diaspora as “bridges” that strengthen the bonds between the two nations.
After a lull of over a decade, momentum for India-New Zealand trade negotiations built during PM Luxon’s March 2025 visit to India, He held talks with PM Narendra Modi. On March 16, 2025, during a meeting between Commerce Minister Piyush Goyal and Trade Minister Todd McClay, both country announced the resumption of negotiations for a comprehensive bilateral FTA.
The toughest hurdle in the India-New Zealand FTA negotiations has been around agriculture and dairy sectors. New Zealand sees huge export potential in these areas, but the Indian government remains cautious. Indian agricultural and dairy producers may struggle to compete against New Zealand’s highly efficient, government-subsidized, and technology-advanced counterparts. Besides, while agriculture contributes about 20% to India’s GDP, it serves as the primary employment sector for roughly 40% of the population, heightening its political sensitivity.
India-New Zealand bilateral trade stood at US$1.02 billion in 2024-25, with an Indian surplus of US$84 million. Indian exports included primarily pharmaceuticals, vehicles, textiles, gems, and IT services, while New Zealand exported wood products, wool, dairy, kiwi fruit, and machinery to India. The FTA deal is projected to double bilateral trade to US$2 billion by 2030. It is also expected to ease mobility for Indian IT professionals and students while boosting New Zealand’s education and tourism sectors. Indian businesses may also benefit from Investments in food processing, forestry, and green technology coming from Kiwis.