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The Indian government will soon sign a free trade agreement (FTA) with New Zealand after several rounds of negotiations since discussions began in March this year.
Sources told CNBC-TV18 that the two countries will sign the agreement “any time” after getting Union Cabinet approval to further bilateral trade and investment.
When? New Zealand Prime Minister Christopher Luxon to visit India in March 2025The two leaders discussed deepening trade and investment.
Modi had encouraged cooperation and investment in sectors such as dairy, food processing and pharma as well as renewable energy and critical minerals.
“Joint work will be done in forestry and horticulture. I am confident that the large business delegation accompanying the Prime Minister will get the opportunity to explore and understand new possibilities in India,” PM Modi said at the time.
However, a lot has changed for India in the months since the US imposed massive 50% tariffs in August, prompting the country to more aggressively diversify export destinations.
This week, PM Modi signs ambitious trade agreement with Oman During the two-day visit, where the Gulf country ensured zero duty on almost 98% of tariff lines, which could give a boost to gems, textiles, pharma and automobiles, among others.
In July, India signed an FTA with UK This is expected to increase bilateral trade by $34 billion per year by 2040.
trade relations with new zealand
From New Zealand, India mainly imports wool, iron and steel, fruits and nuts, and aluminum and exports pharmaceutical products, mechanical machinery, textile articles and pearls, precious stones and metals.
In the year 2023-24, New Zealand has a trade of $1.75 billion, which includes exports of goods and services of $0.84 billion and imports of $0.91 billion.
PM Modi also said that both the countries have also decided to strengthen defense and security relations. Plans were announced to develop a roadmap for training, port visits and cooperation in the defense industry in general.
Modi had said at that time, “Our navies are working together in Combined Task Force-150 for maritime security in the Indian Ocean.”