India-New Zealand FTA Talks Resume After a Decade
Why in the news
India and New Zealand formally restarted talks on a Free Trade Agreement in March 2025, announced after Commerce Minister Piyush Goyal met NZ Trade Minister Todd McClay, during PM Christopher Luxon’s four-day India visit.
Key facts
- History: Comprehensive Economic Cooperation Agreement (CECA) talks began April 2010; paused February 2015 after 10 rounds.
- Aims: deeper supply chain links, better market access, stronger trade (bilateral trade passed $1 billion in April 2024-January 2025).
| Issue | New Zealand | India |
|---|---|---|
| Tariffs | Average 2.3%; over 50% of imports duty-free | Average 17.8%; deep cuts needed, so less attractive |
| Dairy, meat, wine | Wants dairy access and lower tariffs | Protects dairy for millions of farmers; imports from NZ only $0.57 million; may allow limited value-added items |
| Services and people | – | Seeks easier mobility for skilled workers and access for IT and service firms |
Way forward
- Find common ground on tariffs, market access and services.
- Possible US pressure to open India’s dairy and farm sector could affect the talks.
Exam angle
- Earlier agreement name: CECA.
- Leaders: Piyush Goyal and Todd McClay; NZ PM Christopher Luxon.