New Delhi: India and New Zealand have restarted free trade negotiations, a decade after talks fell apart, marking a significant step in economic cooperation between the two nations. The decision comes as New Zealand Prime Minister Christopher Luxon embarks on a five-day visit to India, with a scheduled meeting with his Indian counterpart, Narendra Modi.
The two sides have decided to initiate the first round of negotiations next month, with Luxon calling the development a “major breakthrough” in their economic relationship.
Luxon stated that, “India holds significant potential for New Zealand and will play a pivotal role in doubling New Zealand’s exports by value over the next 10 years.”
Bilateral trade between the two countries currently stands at under $2 billion. As part of the renewed engagement, New Zealand aims to heighten its economic ties with India across multiple sectors, including defence, security, sports, and the environment.
Addressing the press meet with PM @chrisluxonmp of New Zealand. https://t.co/I3tR0rHpeI
— Narendra Modi (@narendramodi) March 17, 2025
Luxon is also a keynote speaker at a geopolitical conference in Delhi, where US Director of National Intelligence Tulsi Gabbard is among the attendees. The New Zealand leader highlighted India’s role in the Indo-Pacific, stating that, “India is an important power in the Indo-Pacific, and I will discuss with Prime Minister Modi what more we can do together to maintain peace and prosperity in our region.”
Luxon is reportedly accompanied by one of the largest delegations ever to travel with a New Zealand prime minister, underscoring the significance of the visit.
Trade negotiations between India and New Zealand began in 2010 but stalled over issues such as market access. New Zealand has long sought greater entry into India’s dairy market, which India has traditionally rescued to support its farmers.
However, India has recently shown greater openness to free trade agreements. The decision to restart talks with New Zealand follows similar moves by Delhi, including the relaunch of FTA negotiations with the European Union and the United Kingdom.
Last year, India signed a $100 billion free trade agreement with the European Free Trade Association—comprising four non-EU European nations—after 16 years of negotiations. India also finalised a major trade cooperation deal with Australia two years ago.
India’s renewed focus on trade agreements comes with shifting global trade policies. Last week, Indian Trade Minister Piyush Goyal urged exporters to “come out of their protectionist mindset” as the country actively seeks new trade opportunities.
Additionally, the resumption of talks with New Zealand aligns with India’s broader trade strategy, especially as US President Donald Trump’s upcoming tariff measures on imports, including those from India, are set to take effect on April 2.
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