India, New Zealand make ‘substantive progress’ in FTA talks; several elements closed

India and New Zealand have made “substantive progress” in negotiations for a proposed free trade agreement (FTA), with both sides closing several elements in the latest round of talks, the Commerce Ministry said on Monday.

Commerce and Industry Minister Piyush Goyal held a bilateral meeting with New Zealand’s Trade Minister Todd McClay in Mumbai to advance discussions on the pact, which aims to boost two-way trade in goods and services and deepen economic cooperation.

The meeting comes as the fourth round of negotiations, held earlier this month, made headway across key areas including market access for goods, services, investment and broader economic partnership.

“Negotiations are almost completed… may take a few more weeks,” an official had said last week following Goyal’s visit to Auckland, where he met New Zealand leaders and business representatives.

India and New Zealand first launched talks for a Comprehensive Economic Cooperation Agreement (CECA) in 2010, but suspended discussions in 2015 after nine rounds. The process was formally restarted in March 2025.

In a statement, the ministry said both ministers recognised “substantive progress,” with a shared understanding emerging on pathways to an “early and mutually satisfactory conclusion” of the FTA.

Bilateral merchandise trade touched USD 1.3 billion in FY25, rising nearly 49% from a year earlier, driven by increased exchanges of pharmaceuticals, textiles, machinery and petroleum products from India, and agricultural goods, dairy, minerals, meat and timber from New Zealand. Wellington’s average import tariff is just 2.3%.

The ministers said a comprehensive and balanced agreement could further accelerate trade, strengthen supply chains and enhance investment linkages, while providing a predictable framework for businesses. They also highlighted opportunities in services, innovation, technology and education.

India is New Zealand’s second-largest source of international students, and direct air connectivity between the two countries has been expanding, supporting tourism and people-to-people ties.

Both countries agreed to sustain momentum and intensify efforts in the coming weeks to secure an “early, balanced and mutually beneficial” deal.