New Zealand and India Launch Historic Free Trade Negotiations

Minister McClay met extensively with Indian Commerce and Industry Minister Piyush Goyal in New Delhi, where the agreement to begin formal negotiations was reached.

Prime Minister Christopher Luxon and Trade and Investment Minister Todd McClay today announced that New Zealand and India have officially launched negotiations towards a Comprehensive Free Trade Agreement (FTA), marking a significant step forward in economic ties between the two nations.

Minister McClay met extensively with Indian Commerce and Industry Minister Piyush Goyal in New Delhi, where the agreement to begin formal negotiations was reached.

"This is a landmark moment for our economic relationship," Prime Minister Luxon stated. "Improving economic ties with India was identified as a top priority when we assumed office 16 months ago. With its rapidly growing economy, India offers immense opportunities for New Zealand businesses."

India, currently the fifth-largest global economy with a population of 1.4 billion, is positioned to play a crucial role in New Zealand’s goal to double exports by value over the next decade.

The agreement follows an intense period of political engagement, during which Minister McClay visited India five times and conducted eight separate meetings with Minister Goyal. Foreign Affairs Minister Winston Peters also held key discussions, and Prime Minister Luxon met directly with Indian Prime Minister Narendra Modi last year.

Minister McClay emphasized that the FTA is part of a broader commitment by the government to deepen ties across multiple sectors, including political dialogue, defence and security cooperation, sports, environmental initiatives, and cultural exchanges.

"Our goal is to establish sustainable, long-term partnerships. A stronger trade relationship will significantly benefit the New Zealand economy, directly impacting employment, wage growth, and the quality of public services available to Kiwis," Minister McClay added.

Negotiations are scheduled to begin next month, with both sides expressing optimism for a swift and productive dialogue.