March 17, 2025
Both leaders welcomed the signing of a memorandum of understanding on defence cooperation between India and New Zealand
They also agreed to discuss the prompt implementation of cooperation in the digital payments sector
India and New Zealand are resuming FTA talks after nearly a decade as previous negotiations were suspended due to disagreements over dairy products
In the fiscal year 2024, New Zealand was India's 87th largest trading partner
Prime Minister Narendra Modi has stated that the proposed free trade agreement (FTA) between India and New Zealand will enhance the potential for bilateral trade and investment. He emphasized the importance of mutual cooperation in areas such as dairy, food processing, and pharmaceuticals. Following his bilateral meeting with New Zealand Prime Minister Christopher Luxon on Monday, Modi mentioned, “We have decided to begin discussions for a mutually beneficial FTA between the two countries. This will increase the potential for bilateral trade and investment.”
According to a joint statement, the two leaders agreed to initiate negotiations on an arrangement that would facilitate the movement of professionals and skilled workers between the two nations as part of the trade agreement discussions. This arrangement will also address the issue of irregular migration.
Additionally, both leaders welcomed the signing of a memorandum of understanding on defence cooperation between India and New Zealand. The statement noted, “This will further strengthen bilateral defence cooperation and establish regular defence engagement. ” They also agreed to discuss the prompt implementation of cooperation in the digital payments sector.
India and New Zealand are resuming FTA talks after nearly a decade. Previous negotiations were suspended due to disagreements over dairy products, which New Delhi insisted on excluding from the pact. The re-launch of these negotiations during Luxon’s five-day visit to India is significant, especially as the world grapples with trade tensions stemming from U.S. tariffs under President Donald Trump.
In the fiscal year 2024, New Zealand was India’s 87th largest trading partner. India’s exports to New Zealand totalled US$538 million, while imports amounted to US$335 million. India’s exports mainly consist of pharmaceutical products, mineral fuels, textile articles, and machinery, whereas imports from New Zealand include mineral fuels, wood, iron and steel, and kiwi fruit.
Source: Hindu Business Line