India and New Zealand aim to sign a free trade agreement in the next two months, New Zealand’s Prime Minister Christopher Luxon said on Tuesday, a move that could expand bilateral trade in agricultural, aerospace and renewable energy sectorsread moreNew Zealand’s Prime Minister Christopher Luxon on Tuesday said India and New Zealand are set to sign a free trade agreement within the next two months.This agreement could boost bilateral trade in sectors such as agriculture, aerospace, and renewable energy.Negotiations for the trade pact resumed after a decade-long pause, following a meeting between Prime Minister Narendra Modi and Luxon during his visit to India.“Let’s drive this relationship forward, and I look forward to signing that agreement with Prime Minister Modi in 60 days,” Luxon told a gathering of business leaders.Negotiations are taking place amid rising global trade tensions, following US President Donald Trump’s decision to impose reciprocal tariffs on imports from several countries, including India.AdvertisementIn response to US policy, India is ramping up efforts to secure trade agreements with the European Union and the United Kingdom.According to data from India’s trade ministry, bilateral trade between India and New Zealand increased by over 30% year-on-year, reaching $1.2 billion in 2024.India’s Commerce Minister Piyush Goyal indicated that a proposed free trade agreement with New Zealand could significantly enhance bilateral relations in sectors such as agriculture, critical minerals, pharmaceuticals, and tourism, with the potential for trade to grow tenfold within a decade.“The huge amount of opportunity in innovation that comes out of New Zealand can reach the whole world through India,” Reuters quoted Goyal as saying.“Manufacturing (and) producing in India for the world at competitive prices can help us take this partnership to greater heights,” he added.However, analysts warn that trade negotiations could face delays due to differences over tariffs on dairy products and non-trade issues.Indian negotiators have resisted pressure to lower tariffs ranging from 30% to 60% on agricultural products, particularly dairy, in free trade talks with several partners including the European Union and New Zealand, arguing it could threaten the livelihood of millions of small farmers.Goyal said both countries plan to accelerate negotiations while “respecting each other’s sensitivities”.“I’ve always said that no free trade agreement is ever negotiated with a gun on anybody’s head,” he said.Luxon said New Zealand expected an enhanced partnership with India in the fields of aerospace and renewable energy, among others.With inputs from agenciesMore from India
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India, New Zealand likely to ink free trade pact in 60 days amid rising global economic tensions
