India–New Zealand Trade Deal Near Completion; Announcement Expected by Year End

India and New Zealand have finalised a free trade agreement (FTA), according to reports citing New Zealand media outlets, including BusinessDesk and Radio New Zealand. The development follows New Zealand Trade Minister Todd McClay’s recent visit to India. McClay and New Zealand Prime Minister Christopher Luxon are scheduled to hold a press conference later on Monday in Wellington.

New Delhi is expected to formally announce the conclusion of the bilateral FTA before the end of the year, making it the third free trade agreement India has sealed in 2025, after deals with the UK in July and Oman in December. According to reports, New Delhi and Wellington have reached convergence on most negotiating points following prolonged physical and virtual engagements.

India and New Zealand began FTA discussions in March. The fourth round of talks was held early last month during Union Commerce and Industry Minister Piyush Goyal’s visit to New Zealand.

A report by The Hindustan Times said a draft agreement is ready, with an official announcement expected early this week. Officials cited in the report said the deal is expected to be comprehensive and balanced, delivering mutual gains while respecting the sensitivities and national interests of both countries.

India will continue to protect farmers’ interests and maintain safeguards in dairy and agriculture. However, New Delhi may offer limited concessions on competing items such as kiwi fruit and timber. The agreement is expected to boost India’s exports of organic products, pharmaceuticals, and services to New Zealand through mutual recognition agreements (MRAs), the report said.

The FTA could also help India diversify its export markets and reduce dependence on a single destination. Officials cited in the reports declined to comment on specific provisions of the deal. However, the agreement is expected to lower trade barriers and foster a more conducive environment for bilateral trade, investment, and business cooperation.

India’s merchandise trade with New Zealand stood at $1.3 billion in 2024–25, registering a 49% year-on-year increase. The proposed FTA is likely to expand bilateral trade across sectors including agriculture, food processing, renewable energy, pharmaceuticals, education, and services, creating new opportunities for businesses and consumers, the commerce ministry said in a statement last month.