'India-New Zealand FTA was entirely women-led team': Piyush Goyal
What's the story
Commerce and Industry Minister Piyush Goyal has hailed the India-New Zealand Free Trade Agreement (FTA) as a "historic and landmark" deal. He said the agreement was finalized in just nine months, making it one of India's fastest trade deals. "More importantly, it has two to three very interesting elements. It is an FTA led entirely by a women-led FTA team [sic]," he said at a press conference.
Diplomatic significance
FTA strengthens India-New Zealand ties
The minister also emphasized the geopolitical importance of the agreement, calling it India's third FTA with a Five Eyes nation after Australia and the United Kingdom. "Australia, the UK, and now New Zealand, this reflects growing trust and deeper economic engagement with advanced economies," Goyal said. New Zealand Prime Minister Christopher Luxon announced that negotiations for this FTA were concluded on Monday.
Economic impact
FTA to boost bilateral trade, investments
The FTA is expected to boost bilateral trade in goods and investments between India and New Zealand. It reduces or eliminates tariffs on 95% of exports from New Zealand to India. Luxon said the agreement builds on the strong friendship between both countries and gives Kiwi businesses access to India's huge consumer market.
Trade forecast
New Zealand exports to India to increase
According to Luxon, New Zealand's exports to India are expected to rise from $1.1 billion annually to $1.3 billion over the next 20 years. In FY25, bilateral trade between the two countries was around $1.3 billion, with India exporting goods worth $711 million and importing goods worth $587 million from New Zealand.
Trade details
India and New Zealand's export baskets
India's exports to New Zealand are mainly in fuels, textiles, and pharmaceuticals. Major exports include aviation turbine fuel (ATF) at $110.8 million, clothing at $95.8 million, medicines at $57.5 million, and machinery at $51.8 million, among others. On the other hand, New Zealand's exports to India are mainly raw materials and agricultural inputs such as wood articles ($78.4 million), steel scrap ($71.2 million), coking coal ($48.8 million), shorn wool ($47.3 million), etc.
Services sector
Services trade a significant pillar of India-New Zealand relationship
The services trade is also an important aspect of the India-New Zealand relationship. In FY24, India's services exports to New Zealand were $214.1 million, while New Zealand's services exports to India were $456.5 million. India's strengths lie in IT and software services, telecommunications support, healthcare, and financial services, while New Zealand's are education (driven by Indian students), tourism, fintech solutions, and specialized aviation training.