India trade deal finalised
Sunday, 21 December 2025
India and New Zealand have finalised negotiations for a Free Trade Agreement (FTA) in recent days, The Post understands.
The FTA will fulfill a key campaign promise of Prime Minister Christopher Luxon and follows a flurry of negotiations over the term, with Trade Minister Todd McClay recently returning from a trip to India.
The Post understands that both sides have come to a final agreement.
Indian media reported on Saturday morning (NZT) that the FTA had gone through the Cabinet in India at the end of last week.
The New Zealand Government has no more Cabinet meetings scheduled for the year, meaning any agreement is likely already finalised on the domestic side for New Zealand.
New Zealand outlet Business Desk reported on Sunday morning that the deal was finalised.
A spokesperson for the Prime Minister commented: 'We have seen the speculation but have no comment right now.'
Trade Minister Todd McClay's office has been contacted.
The exact details of the FTA remain undisclosed, including whether New Zealand's dairy sector has gained significant access - or whether New Zealand has allowed significantly more migration from India.
India and New Zealand formally launched negotiations in March of 2025.
New Zealand and India previously attempted to finalise an FTA in the early 2010s but that ended in 2015 after 10 rounds of negotiations, when India joined the negotiations for the wider Regional Comprehensive Economic Partnership (RCEP). India later withdrew from those negotiations.
The two countries already have significant two-way trade totalling $3.14 billion last year, with forestry New Zealand's largest export to the country.
But an FTA is seen as a major opportunity given India's size and the fact that India is only New Zealand's 25th largest export market at present.
Australia signed a deal with India in 2022 which included preferential tariffs for some Australian goods, and some tariffs to be phased out over time for a range of products including sheep meat, wool, seafood, infant formula, fruit, vegetables and wine.
In total, trade between the two nations was worth almost A$50b ($32.9b) in 2023, according to the Australian Government.
However, Australian dairy was left out of the initial deal which is why the New Zealand negotiations will be closely watched.
New Zealand dairy exports including milk, cheese, and milk powder have been one of the major sticking points in the talks with India.
Australia’s deal also included the establishment of a working holiday scheme for young Indians and post study work visas for its students.
The deal also allowed temporary work visas for Indian graduates and early career professionals in specific industries.
India has accelerated its push to negotiate free trade deals across a range of countries in part to offset the impact of Trump administration tariffs on its exports.
It also recently concluded a deal with Britain.