India and New Zealand are advancing discussions on a bilateral trade agreement that focuses on strengthening sector-specific partnerships without compromising on sensitive areas, according to Union Minister of Commerce and Industry Piyush Goyal. The Minister highlighted that the initiative aims to deepen economic collaboration between the two nations, particularly in areas of mutual growth potential, as both sides pursue a balanced and forward-looking trade framework.
During his visit to New Zealand for the fourth round of Free Trade Agreement (FTA) talks, Goyal met Nikhil Ravishankar, CEO of Air New Zealand, to explore new opportunities in India’s rapidly expanding aviation sector. Their meeting, held en route to Rotorua, underscored how growing connectivity between the two countries could enhance business, tourism, and people-to-people ties. Air New Zealand, the nation’s flag carrier, currently operates a wide network of global passenger and cargo services and plans to collaborate with Air India on direct flight routes.
Both Air India and Air New Zealand are working toward launching direct flights by 2028, which is expected to significantly boost trade, tourism, and cultural connections between the two nations. Goyal praised Air New Zealand’s contribution to regional connectivity and emphasised that India’s aviation market presents vast opportunities for global collaboration. He described the meeting as a positive step in exploring joint initiatives that could help shape a more integrated travel and commerce ecosystem.
Speaking to the media, Piyush Goyal expressed optimism about the ongoing FTA negotiations, noting that the talks were being conducted in a spirit of “warmth and mutual respect.” He acknowledged New Zealand’s hospitality and openness, highlighting Prime Minister Christopher Luxon’s active engagement during the discussions. Goyal said that such interactions reflect the respect India enjoys in New Zealand and demonstrate a shared commitment to long-term cooperation.
The bilateral trade relationship between India and New Zealand has seen a robust upward trend, reaching USD 1.3 billion in total merchandise trade during FY 2024–25—a remarkable 48.6% growth over the previous year. This growth illustrates the strong economic foundation and potential for diversification across sectors such as manufacturing, agriculture, and technology, which could be further enhanced under a well-structured FTA.
India’s imports from New Zealand include wool, iron and steel, fruit and nuts, and aluminium, while its major exports comprise pharmaceuticals, machinery, textiles, and precious stones. The proposed FTA aims to improve supply chain integration, encourage investments, and establish a predictable trade environment, thereby creating a stronger India–New Zealand economic partnership that benefits industries, businesses, and consumers in both countries.