India, New Zealand's proposed FTA could boost trade by 10x in 10 years

India and New Zealand are negotiating a Free Trade Agreement (FTA), as part of which Union Minister for Trade and Commerce Piyush Goyal on Tuesday said that bilateral trade might see a great boom between two nations.

Amid a global trade war between the US and the world, Goyal reiterated that the proposed trade pact between New Delhi and Wellington could expand business in agriculture, critical minerals, pharmaceutical and tourism.

"India, New Zealand proposed FTA can expand trade by 10 times in 10 years," Goyal said speaking at a gathering

of business leaders.

Meanwhile, New Zealand PM, Christopher Luxon, who is on a five-day visit to India, said that the two nations eye signing the trade pact within 60 days.

India and New Zealand on Sunday agreed to revive free trade negotiations that have been stalled for over a decade, after 'productive' discussions between New Zealand's Trade and Investment Minister Todd McClay and Indian Minister Piyush Goyal.

The revival of these talks is timely, especially in light of US President Donald Trump's recent imposition of reciprocal tariffs on imported goods from various countries, including India, which gives New Delhi to explore new trade partnerships and bolster its economic ties with other nations.

Additionally, India has also reached an agreement with the European Union to finalize a long-pending free trade agreement by the end of this year. Moreover, negotiations for a trade deal with the United Kingdom are also underway, further expanding India's trade avenues.

India-New Zealand strengthen ties

New Zealand and India also signed several other agreements aimed at enhancing bilateral cooperation across various sectors.

In the realm of defence, a Memorandum of Understanding (MoU) on Defence Cooperation was established between the defence ministries, which is expected to strengthen military ties and collaborative efforts in security matters.

Trade and economic cooperation also saw a boost with the Authorised Economic Operator - Mutual Recognition Agreement (AEO-MRA). This agreement, signed between India's Central Board of Indirect Taxes and Customs and New Zealand Customs Service, aims to streamline trade processes and enhance customs cooperation, thereby reducing trade barriers and facilitating smoother economic interactions.

In addition to trade, the two nations agreed on a Memorandum of Cooperation on Horticulture, which focuses on collaboration in agricultural practices and sharing expertise between India's Ministry of Agriculture and Farmers' Welfare and New Zealand's Ministry for Primary Industries. This is expected to enhance productivity and sustainability in the horticultural sector.

Furthermore, a Letter of Intent on Forestry was exchanged, aiming to foster collaboration in forestry management and environmental sustainability between the respective ministries.

Education also featured prominently, with an Education Cooperation Agreement signed between the education ministries of both countries to promote academic exchanges and partnerships. Additionally, a Memorandum of Cooperation in Sports was established between India’s Ministry of Youth Affairs & Sports and Sport New Zealand, which will enhance sports collaboration and initiatives.

New Zealand formally joined the Indo-Pacific Oceans' Initiative (IPOI) and became a member of the Coalition for Disaster Resilient Infrastructure (CDRI).