NZ and India open free trade talks

Monday, 17 March 2025

New Delhi | Prime Minister Christopher Luxon has kicked off his tour of India with a bang, announcing the formal start of negotiations towards a trade deal with the world’s most populous nation.

On the afternoon Luxon and his sizeable business and community delegation arrived in New Delhi the Indian Trade Minister announced that work towards a “comprehensive free trade agreement” would begin after Trade Minister Todd McClay and India's Minister for Commerce and Industry Shri Piyush Goyal met.

Luxon was effusive about the deal to start negotiating a deal, calling it a big win for New Zealand’s efforts in the trade area as well as it forming “part of a desire to have a deeper and broader relationship with India, not just in the economic sphere, but also in the defence and also in the people-to-people.”

“This announcement is a major breakthrough in the economic relationship between India and New Zealand,” Luxon said.

“When we came into Government 16 months ago, we made it clear that closer economic ties with India was a key priority,” he said.

Both Luxon and McClay would not be drawn on details on the deal, saying that it was yet to be negotiated. They also would not be drawn on a timeline, instead saying that they were proceeding with pace and that the first round of negotiations would commence next month.

It is a positive step forward for the prime minister who promised in the lead up to the 2023 election that he would conclude a free trade deal with India in his first term of Government - something most seasoned India-watchers consider unlikely.

When probed over the details and whether the diary sector would get a look in in any negotiations, McClay replied that “It was published on the Indian Ministry website, as a comprehensive free trade agreement. Both sides are aiming for a comprehensive agreement.”

Luxon arrived in Delhi to a hot afternoon, greeted by Rajasthani dancers on the tarmac and the Minister of State of Fisheries, Animal Husbandry and Dairying. On the drive into Delhi proper, the streets were lined for kilometres with posters with Luxon’s face on them welcoming him to the Indian capital.

Luxon is leading what is believed to be the biggest ever delegation to India, with two planes full of business leaders, government officials, heavy hitters from the Indian community and a Kapa Haka Group.

Both planes - Boeing 757s which the Defence Force uses for many jobs, one of which is ferrying about the prime ministers - successfully made the trip to New Delhi. They have been prone to breakdowns in the past.

Luxon did not travel with the delegation all the way on the government plane, but met the party in Singapore after attending a March 15th commemorations in Christchurch as well as joining a call led by UK Prime Minister Sir Keir Starmer on the so-called Coalition of the willing and how a grouping of other nations could militarily support Ukraine's efforts against Russia in the absence of American support.

The trip has been a long time in the making. Originally expected to take place in October of last year, it was arranged around the Raisina Dialogue this year - a security conference hosted in India.

Luxon also met with India external affairs Minister S Jaishankar late in the day, the two exchanging pleasantries and jokes about cricket.