Amid India’s trade blitz, New Zealand joins the race for a deal

New Delhi is simultaneously pursuing agreements with the UK and the EU, driven by export-led growth ambitions and concerns over US policies

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India’s Prime Minister Narendra Modi (left) shakes hands with his New Zealand counterpart Christopher Luxon in New Delhi on Monday. Photo: AFP

Published: 3:00pm, 22 Mar 2025

After years of stalled negotiations, New Zealand and India are racing to finalise a free-trade agreement, with Prime Minister Christopher Luxon vowing to secure a deal within 60 days.

The renewed push reflects New Delhi’s growing appetite for global trade partnerships in response to geopolitical challenges, analysts say. India is simultaneously pursuing agreements with the UK and the EU, driven by its export-led growth ambitions and concerns over US trade policies.

Luxon announced on Tuesday that both nations were eager to finalise the long-delayed pact after meeting his Indian counterpart in Delhi.

“Let’s drive this relationship forward, and I look forward to signing that agreement with Prime Minister [Narendra] Modi,” he said.

Bilateral trade between India and New Zealand grew by over 30 per cent year on year, reaching US$1.2 billion in 2024, according to India’s trade ministry. A free-trade agreement could strengthen collaboration in sectors such as agriculture, aerospace, pharmaceuticals and renewable energy. Indian Trade Minister Piyush Goyal has predicted that trade between the two countries could grow tenfold over the next decade.

However, previous negotiations were hindered by India’s cautious stance on its dairy sector, a key area of contention. Soumya Bhowmick, a fellow at the Observer Research Foundation think tank, explained that India’s protective measures were aimed at safeguarding domestic farmers from foreign competition.