India and New Zealand are moving closer to a Free Trade Agreement (FTA) after a decade-long pause in negotiations. This development signifies a renewed commitment to strengthen bilateral economic ties between the two nations.

The formal launch of FTA negotiations occurred on March 16, 2025, during a meeting between India's Commerce and Industry Minister, Piyush Goyal, and New Zealand's Minister for Trade and Investment, Todd McClay. This followed a period of stalled discussions that began in April 2010 and paused after nine rounds in 2015.

Most recently, Commerce and Industry Minister Piyush Goyal is planning a visit to New Zealand to further advance discussions on the FTA. The goal is to bring the negotiations to a mutually beneficial conclusion, enhancing the rapidly growing bilateral trade between India and New Zealand.

The third round of negotiations concluded in Queenstown, New Zealand, on September 19, 2025. These discussions reaffirmed the shared commitment of both nations to strengthen economic ties and work towards the swift conclusion of a balanced and mutually beneficial agreement. The negotiations are guided by the vision of Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon, reflecting a common resolve to deepen bilateral trade, investment, and economic cooperation.

In the fiscal year 2024-25, India's bilateral merchandise trade with New Zealand saw a robust increase of 49%, totaling USD 1.3 billion. The anticipated FTA is expected to further boost trade flows, promote investment linkages, strengthen supply chain resilience, and create a predictable framework for businesses in both countries.

The FTA is expected to unlock new opportunities in sectors such as agriculture, services, technology, and manufacturing, while also contributing to regional and global economic stability. Key issues under discussion include market access and improvements in connectivity. Trade experts suggest that India and New Zealand should address market access issues for goods, promote collaborations in key sectors, and work on improving connectivity to boost bilateral trade.

Both sides have agreed to maintain momentum through ongoing engagements. The next round of in-person negotiations was scheduled to be held in New Delhi on October 13–14, 2025. The visit of Minister Goyal to New Zealand underscores New Zealand's ambition to leverage the FTA to boost trade and investment, while strengthening people-to-people and business-to-business links with India.