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India and New Zealand are set to resume negotiations for a comprehensive Free Trade Agreement (FTA), with the third round of talks scheduled from September 15 to 19, 2025, in Wellington. The discussions follow two earlier rounds held in May and July, and mark a renewed commitment to deepening bilateral trade, investment, and strategic cooperation. Both sides are aiming to finalize a balanced and forward-looking agreement by early 2026, targeting a tenfold increase in trade over the next decade.
The talks will cover a wide range of chapters including trade in goods and services, investment protection, customs procedures, and sanitary and phytosanitary measures. The negotiations are expected to be shaped by mutual priorities—India’s push for greater access in pharmaceuticals, textiles, and IT services, and New Zealand’s interest in dairy, wool, and fresh produce exports.
Key highlights from the upcoming India–New Zealand trade talks
- Third round of FTA negotiations to be held in Wellington from September 15 to 19
- Talks follow successful rounds in New Delhi (May) and virtual sessions in July
- India’s exports to New Zealand stood at USD 711.08 million in FY2024–25
- Imports from New Zealand totaled USD 587.15 million, with bilateral trade reaching USD 1.3 billion
- New Zealand seeks access to India’s dairy market, a historically sensitive sector
- India aims to expand market access for packaged medicaments, motor vehicles, and agri-tech products
Scope and structure of the agreement
The proposed FTA spans 23 chapters, making it one of the most comprehensive bilateral trade frameworks India has pursued in recent years. Key areas under negotiation include:
- Trade in goods and services
- Investment protection and dispute resolution
- Rules of origin and customs facilitation
- Technical barriers to trade
- Sanitary and phytosanitary standards
- Economic cooperation and sustainable development
India is expected to advocate for simplified customs procedures and reduced tariffs on its pharmaceutical and textile exports. New Zealand, meanwhile, will push for greater access to India’s dairy market—a contentious issue given India’s large population of small-scale dairy farmers.
Strategic backdrop and diplomatic momentum
The FTA talks were relaunched in March 2025 during New Zealand Prime Minister Christopher Luxon’s visit to New Delhi, where both countries reaffirmed their commitment to a rules-based trade partnership. The negotiations align with India’s broader trade strategy, which includes recent agreements with Australia, the UAE, and the UK.
The September round will be led by senior officials from India’s Ministry of Commerce and New Zealand’s Ministry for Trade and Investment. Intersessional virtual meetings held in August helped maintain momentum and prepare technical groundwork for the Wellington discussions.
Economic impact and sectoral opportunities
If concluded successfully, the FTA could unlock significant economic benefits for both countries:
- India could gain preferential access for its pharmaceutical, automotive, and IT service sectors
- New Zealand could expand exports of dairy, wool, and horticultural products to India
- Both sides could benefit from enhanced investment flows and supply chain resilience
- The agreement may also include cooperation in climate action, digital governance, and education
India’s merchandise trade with New Zealand grew by 48.6 percent in FY2024–25, signaling strong potential for deeper economic engagement. The FTA is expected to provide a predictable and enabling environment for businesses, especially SMEs and agri-tech innovators.
Challenges and outlook
Despite progress, key hurdles remain. India has historically excluded dairy from FTAs to protect domestic producers, and New Zealand’s insistence on dairy access could delay convergence. Regulatory alignment in food safety, labor standards, and dispute resolution mechanisms also require careful negotiation.
Both sides remain optimistic, with a shared goal of concluding the agreement by early 2026. The September round is expected to set the tone for accelerated negotiations, with additional rounds planned through December.
Sources: Financial Express, ABP Live, OpenVoice News
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