New Zealand has taken a bold step toward expanding its global trade ties. The government has officially launched a public consultation on a proposed Free Trade Agreement (FTA) with India.
Trade and Investment Minister Todd McClay announced the initiative as part of a larger strategy to secure more substantial and diversified trade partnerships in the Asia-Pacific region. India stands out as a top priority.
This consultation invites businesses, industry groups, non-profits, academics, and everyday New Zealanders to share their views. The feedback will shape New Zealand’s negotiations with India in the coming months.
Submissions are due April 15, 2025.
India is not just another trading partner. It is the world’s most populous country and a rapidly growing economic powerhouse. By 2030, experts project India will become the third-largest economy globally.
New Zealand currently has limited trade with India compared to other key partners like China or Australia. However, both governments want to change that. They see enormous potential for mutual benefit.
In a joint announcement on March 17, 2025, Prime Minister Christopher Luxon and Indian Prime Minister Narendra Modi committed to deepening economic ties.
They plan to negotiate a comprehensive and modern FTA by the end of this year, and this public consultation is the first step toward that goal.
The timing is strategic. Global supply chains continue to shift in response to geopolitical uncertainty, and countries are increasingly seeking reliable and democratic partners.
With its large workforce, vibrant tech sector, and hunger for innovation, India seeks stronger ties with nations like New Zealand.
At the same time, New Zealand wants to diversify its trade beyond traditional partners. This deal could achieve both goals.
A successful FTA could benefit New Zealand businesses. Many exporters currently face high tariffs in the Indian market, and removing these barriers would create new opportunities across several sectors.
Agriculture remains a significant focus. New Zealand’s dairy, meat, wine, and horticultural industries are eager to gain improved access to India’s growing middle class.
These consumers are increasingly seeking high-quality imported products.
Education is another key area. New Zealand has long been a destination for international students. A trade deal could streamline the student visa process and increase university collaboration.
Digital services and technology could also see a boost. India’s tech sector is thriving, and New Zealand companies want to tap into that energy. It includes software, cybersecurity, and digital infrastructure services.
Tourism is also involved. Before the pandemic, thousands of Indian travelers visited New Zealand each year. With the borders open again, a trade agreement could reignite two-way tourism.
The consultation paper outlines several other sectors that could benefit. These include renewable energy, pharmaceuticals, critical minerals, and professional services.
In short, this is not just a deal about goods—it’s about the future of economic cooperation.
Indian Trade Minister Piyush Goyal has expressed strong optimism about the talks. He believes bilateral trade could grow tenfold within a decade if both countries commit to a well-structured agreement.
New Zealand’s export community has welcomed the announcement. Business leaders view the consultation as a chance to influence the outcome of the negotiations. They are preparing to submit detailed feedback.
The government wants to hear from large corporations, small businesses, and rural producers. It also seeks input from iwi, academics, and community leaders. Everyone has a stake in the country’s economic future.
McClay emphasized that the government will keep stakeholders informed throughout the negotiation. He also promised that public feedback would directly shape New Zealand’s negotiating priorities.
For New Zealand, the FTA is not only an economic opportunity. It’s also a step toward strengthening strategic relationships in the Indo-Pacific. India is a democratic nation with shared values and interests.
Both countries support a rules-based international system. They want to promote regional stability and economic resilience. A strong bilateral relationship will support these broader goals.
Still, not everyone views free trade agreements the same way. Some groups have raised concerns about labor rights, environmental protections, and cultural impacts. These voices will play a crucial role in the consultation process.
The government insists it wants a fair and inclusive deal. It says the FTA will respect New Zealand’s environmental and social standards. Negotiators aim to protect vulnerable communities and promote sustainable development.
Another important aspect involves Māori interests. The government has pledged to uphold its Treaty of Waitangi obligations in all international agreements.
Māori businesses and iwi groups will have specific opportunities to share their views.
Critics of past trade deals often point to the lack of meaningful consultation. This time, officials say things will be different. They are aiming for a transparent, values-driven process from start to finish.
The Ministry of Foreign Affairs and Trade has launched a dedicated website for public input. It includes background papers, timelines, and a submission portal.
Stakeholders can also attend information sessions and webinars.
It isn’t the first time New Zealand has pursued a trade deal with India. Previous talks stalled due to disagreements over market access and agricultural trade.
However, officials believe the current political climate is more favorable.
The global economy has changed, and both countries face new challenges and opportunities. There is now more urgency and political will to get a deal done.
New Zealand’s economy is built on trade. Around 60% of its GDP comes from international markets. Increasing access to large, high-growth markets like India is vital for long-term prosperity.
Meanwhile, India seeks to secure reliable food, energy, and innovation sources. New Zealand can offer all three. The two economies may be different, but they are highly complementary.
If successful, the agreement would join a growing list of FTAs that New Zealand has signed. These include deals with China, the UK, the EU, and members of the CPTPP. India would be a powerful addition to that list.
Some analysts believe it could become one of New Zealand’s most important trade relationships within a decade. Of course, the scope and quality of the agreement will determine that.
As the consultation process continues, the government encourages everyone to get involved. Public submissions will help identify risks, highlight opportunities, and ensure a balanced outcome. It’s a moment for national conversation.
Trade policy often feels distant from everyday life. But its outcomes affect everything from food prices to job creation and innovation. This deal could profoundly influence the future of New Zealand’s economy.
Expect more debates, op-eds, and public meetings in the coming weeks. The business community will share its hopes, activists will raise their concerns, and policymakers will listen closely.
It is just the beginning. Negotiations will likely be complex and time-consuming, yet the potential rewards—economic, social, and diplomatic—are hard to ignore.
For now, the government’s message is simple: your voice matters. Whether you support the deal, question its impacts, or have ideas for improvement, now is the time to speak up.
The window for submissions closes on April 15, 2025. After that, the formal negotiations begin. What happens next will help shape New Zealand’s future on the world stage.
In an interconnected world, trade is more than transactions. It’s about relationships, resilience, and shared opportunity. This proposed FTA with India offers a chance to build all three.
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About the author
Draven Watson is a seasoned Global News Expert at DbdPost.com with extensive experience in analyzing and reporting international developments. Known for his sharp insights and comprehensive coverage, Draven unpacks the complexities of global events, offering readers a deeper understanding of the issues shaping our interconnected world.
