India and New Zealand concluded the second round of Free Trade Agreement (FTA) negotiations in New Delhi on July 25, 2025, making substantial headway across critical sectors of bilateral trade. Officials advanced discussions in key areas such as trade in goods and services, investment, rules of origin, customs procedures, technical barriers to trade, sanitary and phytosanitary measures, and broader economic cooperation. According to the Ministry of Commerce & Industry, talks reflected a strong mutual desire to reach early convergence on several negotiating texts. Both sides reiterated their commitment to a “balanced, comprehensive, and forward-looking agreement.” The current round built on the March 2025 launch of the FTA talks during a meeting between India’s Commerce Minister Piyush Goyal and New Zealand’s Trade Minister Todd McClay. The joint push reflects a strategic economic vision, as outlined by Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon during their March 2025 engagement in New Delhi.
Trade Momentum Gains Speed
The second round saw negotiators sharpen their focus on dismantling trade barriers and aligning policy frameworks. They covered a wide spectrum of issues with renewed urgency to create a robust and resilient economic partnership. Technical teams worked through layers of regulations and market dynamics to ensure smooth trade flows and increased investor confidence. The Ministry emphasized that the talks maintained a forward trajectory and captured the shared determination to deepen trade engagement. Intersessional virtual meetings will continue to sustain this momentum ahead of the third round. All eyes now turn to New Zealand, where the next round in September 2025 could deliver key breakthroughs.
All The Trade Figures Tell A Strong Story
India’s merchandise trade with New Zealand hit USD 1.3 billion in FY 2024-25, rising 48.6 percent from the previous financial year. The numbers speak volumes about the untapped potential and rising synergy between the two economies. This strong year-on-year growth underlines the urgency and opportunity behind the FTA. With enhanced trade facilitation and lowered barriers on the table, businesses in both countries can expect smoother access to each other’s markets. The Ministry of Commerce & Industry noted that the rise in bilateral trade reinforces the economic logic of pursuing a comprehensive deal that benefits exporters, manufacturers, and consumers alike.
Trade Roadmap Ahead
- Next Round Scheduled: The third round of FTA negotiations will take place in September 2025 in New Zealand.
- Intersessional Virtual Meetings: Both countries will conduct virtual sessions between rounds to sustain momentum and ensure continuity in discussions.
- Focus Areas: Negotiators aim to resolve technical differences and clarify sensitive trade issues that remain on the table.
- Objective: The goal is to finalize a modern, practical trade agreement that yields tangible results for both economies.
- Priority Targets: The September round is expected to focus on finalising key sectors, aligning texts, and preparing for early implementation.
- Stakeholder Watch: Industry leaders, exporters, and policymakers will closely monitor progress as it shapes the next phase of bilateral trade relations.
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