MUMBAI/NEW DELHI: India and New Zealand have decided to start detailed negotiations on a mutually beneficial free trade agreement, Indian Prime Minister Narendra Modi said on Monday after talks with his New Zealand counterpart Christopher Luxon.
The agreement is expected by the end of 2025, an Indian foreign ministry official told reporters.
Efforts to broker a free trade deal between New Zealand and the world’s most populous nation have floundered, partly on whether New Zealand — one of the world’s biggest milk producers — can gain access to India’s heavily protected dairy sector.
New Zealand Prime Minister Christopher Luxon met with his Indian counterpart Narendra Modi on Monday and said both countries would work towards a “balanced, ambitious and comprehensive agreement”.
“The negotiations will expand opportunities for both our countries and our peoples and we look forward to reaching a mutually beneficial agreement,” he said.
Modi said the leaders had agreed to “mutual cooperation and investment” in dairy, food processing and pharmaceutical industries.
“Our partnership will prove to be a match winning partnership for both countries,” he added.
Both countries signed agreements for cooperation in the education, defence and sports sectors.
Luxon and Modi also “agreed to enhance the trade and investment relationship between India and New Zealand to realise its untapped potential and to contribute to inclusive and sustainable economic growth,” a joint statement read.
India’s exports to New Zealand totalled $682 million in 2023, while New Zealand’s shipments to India aggregated to $369 million in the same year, figures from data visualisation platform Observatory of Economic Complexity showed.
“Free trade agreement is a process which has been initiated, in a timebound manner. Perhaps by the end of this year we hope to conclude (the) free trade agreement,” said Jaideep Mazumdar, secretary east at the Indian foreign ministry.
