India Eyes Asia-Pacific FTA Gains with New Zealand Talks
Mumbai: India intensified its global free trade agenda this week with a key bilateral meeting between Union Minister of Commerce and Industry Piyush Goyal and New Zealand Minister for Trade Todd McClay in Mumbai. The discussion, aimed at advancing the proposed India–New Zealand Free Trade Agreement (FTA), followed earlier high-level negotiations in Moscow on the India–Eurasian Economic Union (EAEU) Free Trade Agreement, where Commerce Secretary Rajesh Agrawal had reviewed progress on goods, services, and investment tracks.
Officials described the Mumbai meeting as productive, noting substantive progress across trade disciplines and emerging shared understanding on pathways to an early, mutually satisfactory conclusion. Bilateral merchandise trade between India and New Zealand reached United States Dollar 1.3 billion (US$1.3 billion) in fiscal year 2024–25, a nearly 49 per cent increase over the previous year. Both Ministers highlighted that a comprehensive and balanced FTA would not only accelerate trade flows but also deepen investment linkages, strengthen supply-chain resilience, and provide a stable, transparent, and predictable framework for businesses in both countries.
Observers note that the success of the India–New Zealand FTA could set a precedent for other mid-sized Asia-Pacific economies, offering a replicable model that combines sector-specific concessions with balanced protections for domestic industry, agriculture, and services. Sensitive sectors such as dairy and micro, small, and medium enterprises (MSMEs) are expected to receive special attention, while opportunities in innovation, technology collaboration, and digital trade remain central to the agreement.
India’s broader push for FTAs spans multiple regions. In the Gulf Cooperation Council (GCC) — covering Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain, and Oman — talks continue to advance with a focus on goods, services, and investment. In Africa, India is pursuing sectoral cooperation and regulatory alignment with selected partners, building on Mauritius’ 2021 Comprehensive Economic Cooperation and Partnership Agreement (CECPA). In Latin America, technical discussions with the Southern Common Market (MERCOSUR) countries and bilateral engagement with Mexico, Chile, and Peru are ongoing. Meanwhile, progress with the European Union (EU) has been slow due to outstanding issues on digital trade, intellectual property, sustainability, and market access.
External pressures add further impetus to India’s FTA drive. Verified reports indicate that the United States of America (USA) imposed reciprocal tariffs on several Indian exports in 2025, particularly affecting labour-intensive sectors such as textiles, leather, and chemicals. Analysts suggest these measures have sharpened India’s urgency to diversify trade partners, integrate producers into global value chains, and strengthen resilience against economic shocks. Officials stress that the current surge in trade diplomacy is part of a strategic recalibration begun several years ago, rather than a sudden policy shift.
The Ministers reaffirmed their commitment to sustain constructive momentum in the coming weeks, with both sides confident that the India–New Zealand FTA could unlock significant opportunities across goods, services, and investment, while complementing India’s wider network of ongoing trade negotiations in the Eurasian Economic Union, Gulf Cooperation Council, Africa, Latin America, and the European Union.
– global bihari bureau
