India and New Zealand have revived free trade negotiations, a decade after talks stalled, as New Zealand Prime Minister Christopher Luxon embarked on a five-day visit to Delhi, where he held bilateral discussions with Indian Prime Minister Narendra Modi.
Both countries have agreed to begin the first round of negotiations next month, marking what Luxon described as a “major breakthrough” in their economic ties. He emphasized India’s potential for New Zealand, stating that it could play a crucial role in doubling New Zealand’s export value over the next decade. Currently, bilateral trade between the two nations stands at under $2 billion (£1.55 billion).
Luxon, a keynote speaker at a geopolitical conference in Delhi attended by US Director of National Intelligence Tulsi Gabbard, highlighted New Zealand’s intention to strengthen ties with India in sectors beyond trade, including defence, security, sports, and the environment. As part of this effort, the two leaders signed a defence cooperation pact aimed at bolstering maritime security and explored collaboration in digital payments.
Additionally, representatives from the Five Eyes intelligence alliance—comprising New Zealand, Australia, Canada, the UK, and the US—attended a security conference hosted by India’s National Security Adviser, Ajit Doval, in Delhi. India’s strategic interest in New Zealand is tied to its broader efforts to counter China’s influence in the Indian Ocean region.
Luxon’s delegation, reportedly one of the largest ever led by a New Zealand prime minister, underscores the significance of this visit.
Trade negotiations between India and New Zealand first began in 2010 but collapsed after multiple rounds due to disagreements over market access. New Zealand has long sought greater entry into India’s dairy market, which India has traditionally protected to safeguard its farmers. However, in recent years, India has shown greater openness to bilateral trade agreements.
The renewed talks come amid India’s broader push for free trade agreements, following recent negotiations with the European Union and the United Kingdom. Last year, India concluded a $100 billion trade deal with the European Free Trade Association after nearly 16 years of discussions, and two years ago, it signed a major trade pact with Australia.
India’s renewed trade efforts have gained urgency as US President Donald Trump prepares to implement new tariffs on imported goods from multiple countries, including India, starting April 2. Last week, Indian Trade Minister Piyush Goyal urged Indian exporters to “move beyond a protectionist mindset” as the country seeks to expand its trade partnerships.
