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25 Mar 2025

Government opens consultation on free trade agreement with India

12:22 pm on 25 March 2025
Todd McClay

Trade Minister Todd McClay Photo: RNZ / Samuel Rillstone

Trade Minister Todd McClay has called for public submissions on New Zealand's negotiations for a comprehensive free trade agreement with India.

"Negotiations are getting underway, and public input will better inform us in the early stages of this important process," McClay said.

The government has called for submissions from all interested New Zealanders, including businesses, non-governmental organizations and members of the public.

Submissions can be sent to India-FTA@mfat.govt.nz by 15 April.

The announcement follows Prime Minister Christopher Luxon's recent trip to India, where both countries agreed to restart free trade negotiations - a decade after earlier talks stalled.

"This is a great win for New Zealand," Luxon told reporters last week in India.

The renewed momentum comes after McClay held discussions with his Indian counterpart, Piyush Goyal, in New Delhi.

The previous negotiations, which took place between 2011 and 2015, were hindered by challenges, particularly around New Zealand's dairy exports.

Talks ended in 2015 after India joined the Regional Comprehensive Economic Partnership (RCEP), which it later exited in 2019.

Luxon met Indian Prime Minister Narendra Modi on his four-day visit, pledging to strengthen military cooperation and collaborate further in education, immigration and counterterrorism.

The leaders also signed agreements on sports and horticulture cooperation.

Other major agreements included a code-sharing partnership between Air India and Air New Zealand, with the possibility of direct flight connectivity by 2028.

A memorandum of understanding was also signed between Auckland Airport and Delhi Indira Gandhi International Airport.

Joint venture agreements were established between Tourism New Zealand and nine Indian travel partners, aiming to boost the tourism sector.

Additionally, another code-sharing partnership was signed with Air India and Virgin Australia.

In all, more than 30 agreements resulted from Luxon's trip to India.

In 2024, trade between New Zealand and India was valued at $3.14 billion.

New Zealand's key exports to India last year included forestry products valued at $126 million. Of this, $71 million came from log exports.

Iron and steel exports were valued at $99 million. Horticultural products contributed $89 million, with apples and kiwifruit making up $84 million of that total.

Wool exports were valued at $77 million.

Aluminium exports were worth $61 million, and dairy exports accounted for $57 million.

Key imports from India in 2024 included machinery and equipment valued at $174 million. Textiles and apparel imports were worth $147 million.

Pharmaceuticals contributed $131 million, and vehicle imports were valued at $62 million. Precious stones and metals accounted for $60 million, while paper product imports totaled $44 million.

With a population of 1.4 billion and projected to become the world's third-largest economy by 2030, the government believes that India offers vast economic potential for New Zealand.

McClay said a robust trade partnership with India was critical to the government's goal of doubling New Zealand's export value over the next decade.

"Alongside trade negotiations, New Zealand will continue to deepen connections with India across political, defence, security, sporting, environmental and people-to-people relationships," McClay said.

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