The draft is expected to be comprehensive and balanced, ensuring mutual gains while respecting each country's economic priorities.
India and New Zealand Set to Seal Landmark Free Trade Deal in 2025
Before the close of 2025, India and New Zealand are about to formally announce the conclusion of a bilateral Free Trade Agreement (FTA), which is a major development expected to significantly boost trade and investment between the two nations.
According to officials, a draft of the proposed FTA is already prepared. An announcement could come early this week, ahead of year-end. The move comes after four formal rounds of negotiations, with Union Commerce and Industry Minister Piyush Goyal leading the Indian delegation and New Zealand’s Trade and Investment Minister Todd McClay representing Wellington.
According to sources, negotiators have reportedly reached convergence on almost all elements through sustained physical and virtual discussions following Goyal’s recent visit to New Zealand, demonstrating momentum toward finalisation. The draft is expected to be comprehensive and balanced, ensuring mutual gains while respecting each country’s economic priorities.
Sources indicate that India will protect sensitive sectors, notably its subsistence farmers and dairy industry, while potentially allowing concessions on non-competing items such as kiwi fruits and timber.
Officials also said that the agreement is likely to facilitate greater market access for Indian goods and services in New Zealand, including organic products, pharmaceuticals, and professional services, through mutual recognition agreements (MRAs) that help both sides recognise professional qualifications and quality standards.
If successful, this FTA will be India’s third major trade pact of 2025, following agreements with the United Kingdom in July and Oman on December 18, government sources added.
Bilateral merchandise trade between India and New Zealand reached USD 1.3 billion in 2024–25, marking nearly 49% growth year-on-year, highlighting the expanding economic relationship. The proposed agreement is expected to unlock further potential across agriculture, food processing, renewable energy, education, pharmaceuticals, and services, creating new opportunities for businesses and consumers in both countries.
According to sources, the pact highlights renewed bilateral engagement after Indian Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon agreed in March to pursue a balanced, ambitious, and mutually beneficial trade agreement.
Source: Hindustan Times
