NEW DELHI: India and New Zealand are on the brink of a historic economic transformation, with both nations committing to significantly expand bilateral trade and investment. At the India-New Zealand Economic Forum in New Delhi, New Zealand Prime Minister Rt Hon Christopher Luxon and India’s Commerce & Industry Minister Piyush Goyal laid out an ambitious roadmap, targeting a tenfold growth in trade over the next decade and fast-tracking a Free Trade Agreement (FTA) within 60 days. If realized, this deal could reshape economic ties between the two countries, unlocking multi-sectoral opportunities and enhancing global trade dynamics.
A Shift in India-New Zealand Trade Relations
As of the 2023-24 fiscal year, total trade between India and New Zealand stands at approximately $1.75 billion, with New Zealand exporting $0.84 billion worth of goods to India, including wool, iron and steel, fruits, nuts, and aluminum. Meanwhile, India’s $0.91 billion exports to New Zealand largely consist of pharmaceuticals, mechanical machinery, and textiles. While both nations have engaged in steady trade over the years, the current volume remains far below potential, given India’s status as one of the world’s fastest-growing economies.
Recognizing this untapped potential, both governments have now pushed for a trade agreement that would remove existing barriers, diversify trade sectors, and create a favorable investment environment. With India’s economy projected to grow from $4 trillion to $35 trillion in the next 25 years, New Zealand is positioning itself to be a key partner in this expansion.
FTA: A Game-Changer for Both Nations
The most significant takeaway from the forum was the commitment to concluding the India-New Zealand FTA within 60 days—a highly ambitious timeline compared to traditional trade negotiations that often take years. Commerce Minister Piyush Goyal emphasized that the deal will be “strong and unbeatable,” setting the foundation for rapid economic growth and cross-border investments. If successful, this agreement could pave the way for an annual trade volume increase to $17.5 billion by 2035, requiring an average annual growth rate of 25%.
For New Zealand, which has long relied on Australia, China, and the US for trade, this partnership with India represents a critical opportunity to diversify export markets. Prime Minister Christopher Luxon highlighted that India’s rise as a global economic powerhouse necessitates deeper engagement. “India is not just a key partner; it is an economic powerhouse that will be the third-largest economy by 2030. In a multipolar world, collaboration with India is both a necessity and an opportunity for New Zealand,” he stated.
Key Sectors Driving Growth
The discussions at the forum identified four high-impact sectors that will drive India-New Zealand trade growth:
1. Agriculture & Dairy: New Zealand’s agri-tech and sustainable farming expertise could be instrumental in helping India improve productivity, food security, and supply chain resilience. Conversely, India could provide a vast consumer market for New Zealand’s dairy exports, with rising demand for high-quality milk products.
2. Critical Minerals & Renewable Energy: New Zealand and India could collaborate on critical mineral supply chains, which are essential for the global shift toward clean energy technologies. With India aggressively investing in solar, wind, and battery storage, joint projects in renewable energy infrastructure and sustainability could be a win-win.
3. Pharmaceuticals & Manufacturing: India’s world-class pharmaceutical industry could benefit from New Zealand’s regulatory expertise in drug safety and clinical research, ensuring wider access to affordable medicines. New Zealand, in turn, could leverage India’s cost-effective manufacturing base for expanding exports.
4. Education & Tourism: New Zealand has been a popular destination for Indian students, and strengthening academic exchanges could further boost knowledge-sharing and research collaboration. Additionally, with India’s booming outbound tourism sector, a more accessible visa regime and enhanced flight connectivity could significantly increase travel between the two countries.
MoUs & Institutional Cooperation
The forum resulted in seven Memorandums of Understanding (MoUs) across education, aviation, hospitality, and data security. The Federation of Indian Chambers of Commerce & Industry (FICCI) renewed its partnership with the India-New Zealand Business Council, reinforcing their commitment to expanding bilateral trade.
Industry leaders present at the event also emphasized the need for swift policy implementation. Dame Therese Walsh, Chair of ASB Bank & Air New Zealand, called for joint action on global challenges, while Dr. Anish Shah, CEO of Mahindra & Mahindra, highlighted that “decisive actions must follow words” for the trade partnership to deliver tangible results.
A Global Trade Realignment in the Making
The accelerated FTA negotiations between India and New Zealand are reflective of a shifting global trade landscape, where nations are actively seeking to diversify partnerships and reduce dependency on single markets. India’s strategy aligns with its broader efforts to integrate more deeply into global value chains, particularly at a time when geopolitical uncertainties and supply chain disruptions are reshaping international commerce.
For New Zealand, which has traditionally relied on China and Western economies for trade, this agreement presents a long-term strategy to hedge risks and secure a foothold in Asia’s fastest-growing economy. By aligning with India’s growth trajectory, New Zealand stands to gain from increased market access, investment flows, and economic resilience.
A Defining Decade Ahead
The next decade could mark a historic transformation in India-New Zealand economic relations. With a 10X growth target, a fast-tracked FTA, and deepened cooperation across critical sectors, both countries are setting the stage for a new era of economic diplomacy. If executed effectively, this partnership will not only strengthen trade ties but also create a model for collaboration between developed economies and emerging global powers.
As the world watches, India and New Zealand have the opportunity to prove that agility in trade negotiations and strategic sectoral partnerships can yield unprecedented economic growth. With bold ambitions and decisive action, this agreement has the potential to reshape bilateral trade, regional cooperation, and global commerce in the years to come.
Follow Dr. Shahid Siddiqui on X @shahidsiddiqui for insights on global trade, diplomacy, and geopolitics.
