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'Lots Done': India-New Zealand FTA Nears Finalisation, To Cover Agriculture, Space Tech And More
'Lots Done': India-New Zealand FTA Nears Finalisation, To Cover Agriculture, Space Tech And More
The long-anticipated Free Trade Agreement (FTA) between India and New Zealand is in its final stages of negotiation, with both nations expressing optimism about an early conclusion. After six extensive rounds of talks, officials are now conducting a final review of the core issues. According to sources familiar with the matter, the review meeting was extended by over two hours to iron out a few remaining “sticky" subjects, including sensitive matters related to agriculture and dairy.
New Zealand's Trade Minister Todd McClay described the progress as “lots done, a little bit still to go," while India's Commerce and Industry Minister Piyush Goyal confirmed that the two sides “will finalise the FTA very soon." The final announcement, sources suggest, could be made in India following approval from both Prime Ministers.
As part of the next phase of engagement, McClay is scheduled to visit India next week, leading a high-level business delegation. The delegation will travel to Mumbai and New Delhi for a series of meetings aimed at deepening bilateral economic ties. Sources say a key focus area of cooperation will be farming and farm technology, with New Zealand planning substantial long-term investments in India's agricultural infrastructure. Initially, core raw materials for paper manufacturing will be sourced from New Zealand, but over time, the country is expected to follow Singapore's model—investing directly in production facilities within India to cater to domestic and regional markets, sources suggest.
Officials have reiterated that the agreement will not compromise the interests of India's farmers, fisherfolk, or small and medium enterprises (SMEs). Instead, the deal aims to significantly expand the scale and balance of trade between the two nations by 2030, setting ambitious growth targets. Industry representatives on both sides have described recent interactions as “hugely positive," with discussions also extending beyond trade to areas such as sports, film production, tourism, and space technology.
In a noteworthy development, New Zealand has offered its launch pads for India's space missions, potentially aiding projects such as Gaganyaan and Mangalyaan, say sources. Meanwhile, a memorandum of understanding on film production and collaboration is expected to be signed soon in India, promoting joint filmmaking ventures. Another significant milestone is the MoU for direct Delhi–Auckland flights, which has already been signed. The route is expected to become operational by 2027, pending aircraft procurement by the airlines involved.
While most chapters of the FTA are nearly settled, dairy and core agriculture remain areas requiring delicate handling. Negotiators continue to seek mutually beneficial solutions that safeguard domestic producers while promoting greater market access and technology sharing.
The India–New Zealand FTA represents a strategic economic partnership designed to expand trade, investment, and collaboration across key sectors. Once finalised, the agreement is expected to enhance market access for goods and services, foster innovation in agriculture and technology, and strengthen ties in emerging domains like space and entertainment. Beyond boosting bilateral trade, the deal aims to create a framework for sustainable growth, aligning with India's “Make in India" vision and New Zealand's commitment to building resilient global supply chains.
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Earlier this week, Piyush Goyal had hinted at the possibility of signing a Free Trade Agreement (FTA) with New Zealand soon. “For about 20 years, discussions have been going on in New Zealand for FTA (Free Trade Agreement), but it was not getting done due to some reason. It was set aside. PM Modi set a target of Viksit Bharat 2047 before everyone. For that, it is essential to further expand our relations with developed countries," Goyal was quoted as saying by news agency ANI.
“There is a possibility of FTA really fast. I hope we will decide on an FTA soon between the two nations which will be beneficial for both countries," he added.
Source: News18
Related Posts: India New Zealand Free Trade Agreement, India New Zealand FTA, India New Zealand trade deal, India New Zealand economic partnership, India New Zealand agriculture cooperation
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