SDG 17: Partnerships for the Goals | SDG 8: Decent Work and Economic Growth
Institutions: Ministry of Commerce & Industry
The fourth round of negotiations on the India–New Zealand Free Trade Agreement (FTA) successfully concluded in Auckland and Rotorua on November 8, 2025, following five days of constructive and forward-looking discussions. Both Ministers acknowledged steady progress and reaffirmed their commitment to work towards an early, balanced, and comprehensive trade agreement. Detailed engagements covered key tracks including trade in goods, trade in services, economic and trade cooperation, and Rules of Origin—the crucial criteria that determine a product’s national source to qualify for the agreement’s preferential tariffs..
The proposed FTA is expected to significantly enhance trade flows, deepen investment linkages, strengthen supply-chain resilience, and provide greater predictability and market access for businesses in both countries. India’s bilateral merchandise trade with New Zealand stood at USD 1.3 billion in FY 2024–25, marking a year-on-year growth of nearly 49 percent. The agreement is expected to unlock further potential in sectors such as agriculture, food processing, renewable energy, pharmaceuticals, education, and services. Both sides agreed to sustain momentum through inter-sessional work towards early convergence.
The acceleration of FTA talks with New Zealand is a strategic move supporting India’s commitment to forging deeper economic partnerships and securing supply chains in the Asia-Pacific region. The successful conclusion of this agreement is expected to unlock further growth potential and provide stability for Indian businesses engaging in international trade.
What is an FTA negotiation’s ‘Rules of Origin’ track?→ Rules of Origin refers to the specific criteria used to determine the national source of a product. In the context of an FTA, this track establishes the minimum percentage of local content or the level of processing a product must undergo within a member country to qualify for the preferential, often zero, tariff rates under the agreement.
What is ‘Supply-Chain Resilience’ in the context of this FTA?→ Supply-Chain Resilience refers to the ability of the economic partnership to maintain continuous and timely delivery of goods and services despite disruptions (such as geopolitical tensions or natural disasters). The proposed FTA aims to strengthen this resilience by diversifying sources and ensuring predictable trade rules for critical sectors like pharmaceuticals and food processing.
Relevant Question for Policy Stakeholders: How will the Ministry of Commerce balance the liberalization required to conclude a comprehensive FTA with New Zealand while protecting India’s sensitive domestic agricultural and dairy sectors?
Follow the full news here: India–New Zealand FTA Negotiations Conclude Fourth Round