India and New Zealand launch negotiations for a free trade agreement
- Prime Ministers Narendra Modi and Christopher Luxon confirmed the launch of FTA negotiations during Luxon's visit.
- The negotiations aim to deepen economic ties and enhance cooperation in multiple sectors.
- The initiative reflects a commitment to building a mutually beneficial economic partnership in a changing global landscape.
India and New Zealand have embarked on a significant initiative aimed at enhancing their bilateral economic ties through the revival of Free Trade Agreement negotiations. This development was formally announced on Sunday, March 16, 2025, during New Zealand Prime Minister Christopher Luxon's visit to India where he held discussions with Indian Prime Minister Narendra Modi. The meeting underscored the commitment of both leaders to foster a comprehensive partnership that emphasizes economic cooperation and shared democratic values. The momentum for the FTA negotiations stems from a prior meeting between India's Commerce and Industry Minister Piyush Goyal and New Zealand's Trade and Investment Minister Todd McClay, setting a foundation for agreements that aim to benefit both nations. This is particularly notable as the discussions reflect an urgency in pursuing trade agreements amid shifting global economic dynamics, especially considering recent changes in international trade policies. Prime Minister Luxon highlighted the importance of trade in driving economic growth, asserting that the agreement would aim for balanced outcomes that improve market access, supply chain integration, and resilience in economies. As bilateral trade between India and New Zealand reached $1.7 billion in early 2025, the potential FTA is expected to unlock new opportunities in several sectors, including agriculture and technology. The leaders expressed their vision for a future-ready partnership benefiting businesses and communities on both sides. Furthermore, Luxon's visit included discussions extending beyond trade to include defense, food processing, renewable energy, and other sectors, indicating a comprehensive approach to revitalizing their bilateral relationship. The recent revival of the FTA negotiations after a decade-long hiatus demonstrates both nations' commitment to enhancing collaborative efforts across various domains and securing economic stability amid global challenges.