India & New Zealand Conclude 2nd Round of FTA Talks in New Delhi and 3rd Round Set for September 2025.
International
India and New Zealand have recently successfully concluded the second round of Free Trade Agreement (FTA) negotiations in New Delhi, held from 14 to 25 July 2025. The talks advanced critical issues including goods, services, investment, trade facilitation, rules of origin, and technical barriers to trade, setting the stage for an upcoming third round scheduled in New Zealand in September.
- The resumption of FTA negotiations in March 2025 followed a decade-long hiatus since 2015. The second round of talks, which took place over 12 days, was launched to build upon initial deliberations held in early May and aims at crafting a balanced, comprehensive and forward‑looking trade deal between the two nations.
- These ongoing negotiations reflect robust economic momentum: India–New Zealand merchandise trade reached USD 1.3 billion in FY 2024‑25, a 48.6% increase compared to the previous fiscal year. This growth underscores the potential benefits of a comprehensive trade pact.
- Key challenges in the negotiations include dairy market access — a sensitive sector for India. New Zealand has pushed for greater access to Indian dairy, meat, and wine markets. India, meanwhile, is seeking improved market access for its IT, pharmaceuticals, textiles, and services industries, highlighting the complex balance of concessions required.
Main Point :- (i) India’s delegation was led by Commerce Minister Piyush Goyal, while New Zealand’s Trade Minister Todd McClay played a leading role from the Kiwi side. Their participation reflects the political commitment at the highest level to expedite the FTA negotiations and strengthen bilateral economic ties.
(ii) A successful FTA would transform trade between the two Commonwealth partners by enhancing supply chain integration, diversifying exports (such as textiles, pharmaceuticals, agricultural machinery, electronics, and shrimps), and creating stronger avenues for investment and services collaboration. Planned intersessional virtual meetings aim to maintain momentum ahead of the September 2025 round in New Zealand.
Capital: Wellington
Currency: New Zealand dollar ($) (NZD)
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