Talks expected to boost exports and economic ties
Prime Minister Christopher Luxon and Trade and Investment Minister Todd McClay announced Monday that New Zealand and India have officially launched negotiations for a comprehensive free trade agreement (FTA).
McClay met with India's Commerce and Industry Minister Piyush Goyal in New Delhi, during which both officials agreed to formally begin negotiations. These discussions aim to strengthen economic ties between the two nations by enhancing trade, investment, and business cooperation.
"This announcement is a major breakthrough in the economic relationship between India and New Zealand," Prime Minister Luxon said in a press release. "When we came into Government 16 months ago, we made it clear that closer economic ties with India was a key priority."
Luxon noted that India, currently the world's fifth-largest economy with a population of 1.4 billion, represents a significant opportunity for New Zealand businesses. He further highlighted that India's growing economic influence would be crucial in achieving the government's goal of doubling New Zealand's export value within the next decade.
The decision to pursue an FTA follows increased political engagement between the two countries. McClay has visited India five times and has held eight meetings with his Indian counterpart. Foreign Affairs Minister Winston Peters has also visited India, and Luxon met with the country's prime minister, Narendra Modi, last year to discuss bilateral cooperation.
McClay emphasised that the FTA is part of a broader commitment to strengthening ties with India across various sectors, including politics, defence, security, sports, environmental initiatives, and people-to-people connections.
"One in four Kiwi jobs rely on trade, and last year, our export revenue contributed $100 billion to the economy," McClay said. "Strong agreements and relationships like this ensure every New Zealander has good job opportunities, higher wages, and access to world-class public services."
Formal negotiations between New Zealand and India will begin next month.
