India and New Zealand have set an ambitious target of concluding their free trade agreement (FTA) negotiations within 60 days, despite discussions beginning only two days ago. Senior officials from both countries confirmed this fast-tracked approach during the India-New Zealand Economic Forum on Tuesday.

High Hopes for Expedited Trade Agreement

Speaking at the forum, organised by the Federation of Indian Chambers of Commerce & Industry (FICCI), New Zealand Prime Minister Christopher Luxon expressed confidence in the trade ministers’ ability to accelerate the deal.

“We have high expectations from our trade ministers,” Luxon stated. Injecting humour into the discussion, he remarked, “If they manage to wrap this up in 60 days, they might end up with a hairstyle like mine.” He further emphasised the significant opportunities available in the current trade relationship between the two nations.

India’s Minister of Commerce and Industry, Piyush Goyal, echoed this optimism. “What if we were to complete it in 60 days? I am sure together we can make a significant difference to the economies of India and New Zealand,” Goyal said, reinforcing India’s commitment to swift negotiations.

Aiming for a Record-Breaking Agreement

Trade negotiations often take years to finalise, but precedent suggests an expedited process is possible. India and the United Arab Emirates (UAE) successfully concluded their Comprehensive Economic Partnership Agreement (CEPA) within a record 88 days before signing it on February 18, 2022.

The urgency surrounding the India-New Zealand FTA stems from a broader geopolitical concern: the looming global tariff war spurred by U.S. President Donald Trump’s protectionist policies. To counter economic uncertainties, India and New Zealand announced the formal launch of their FTA talks on Sunday during Luxon’s official visit to India, which runs from March 16 to 20.

Bilateral Trade Relations and Growth Potential

The FTA negotiations are being led by Piyush Goyal and New Zealand’s Minister for Trade and Investment, Todd McClay. The agreement is expected to bolster trade ties across multiple sectors.

“Whether it’s food processing, pharma, renewable energy, critical minerals, policy, horticulture, tourism, or sports, I think the sky is the limit,” Goyal stated. He also emphasised the importance of education and research, describing them as essential components of fostering closer bilateral ties. According to him, trade between India and New Zealand could potentially grow tenfold in just a decade.

India is looking to strengthen its manufacturing sector through the partnership. “Manufacturing in India, producing in India for the world at competitive prices can help us take this partnership to greater heights,” Goyal added.

Current Trade Figures and Opportunities for Growth

Despite strong diplomatic relations, bilateral merchandise trade between India and New Zealand remains below $1 billion. In the financial year 2023-24 (FY24), India’s exports to New Zealand stood at $538.3 million, while imports from New Zealand amounted to $335.1 million. This indicates significant untapped potential in economic cooperation between the two nations.

Interestingly, trade statistics from the commerce ministry show that India’s exports to New Zealand saw a marginal decline of 1.74% in FY24, while imports fell sharply by 29.86%.

Sectoral Focus in Trade Talks

New Zealand is keen to expand trade relations by focusing on dairy, food processing and technology. Meanwhile, India seeks greater market access for its agricultural products, textiles, and IT services.

India has actively pursued trade agreements with multiple countries in recent years, including Japan, South Korea, Australia, and the European Free Trade Association (EFTA). Ongoing negotiations are also in progress with Oman, ASEAN and the European Union to further strengthen trade, investment, and economic collaboration.

With both nations committed to expediting the agreement, the India-New Zealand FTA could set a new benchmark in trade negotiations. If successful within the 60-day window, the deal will not only boost economic ties but also shield both economies from potential disruptions caused by global trade uncertainties. Luxon’s visit has reinforced the growing significance of India-New Zealand trade relations, and the coming weeks will determine how quickly both sides can translate their shared vision into a formal agreement.