metro india news  I hyderabad : India and New Zealand are close to concluding negotiations on a proposed free trade agreement (FTA), with talks expected to be finalised soon, Commerce Secretary Rajesh Agrawal said on Monday.

After the fourth round of negotiations, both countries have intensified discussions through virtual and in-person meetings at official and ministerial levels. “We are in a good zone where we hope the agreement will be closed and finalised soon. It is expected to be done shortly,” Agrawal told reporters.

The talks gained further momentum last week when New Zealand Trade Minister Todd McClay visited New Delhi and reviewed the progress of negotiations with Union Commerce and Industry Minister Piyush Goyal. The visit focused on resolving pending issues and pushing the agreement towards completion.

Formal negotiations for the proposed FTA were launched on March 16, 2025, as part of efforts to strengthen bilateral economic ties. India’s merchandise trade with New Zealand stood at USD 1.3 billion in 2024–25, recording a growth of nearly 49 per cent over the previous year.

The proposed agreement is expected to boost trade flows, promote investment linkages, improve supply chain resilience, and provide a predictable framework for businesses in both countries. New Zealand’s average import tariff is relatively low at 2.3 per cent, offering increased opportunities for Indian exporters.

Under a free trade agreement, countries significantly reduce or eliminate customs duties on a wide range of goods and ease norms to promote trade in goods and services.

India and New Zealand had earlier begun negotiations for a Comprehensive Economic Cooperation Agreement (CECA) in April 2010. However, after nine rounds of talks, discussions stalled in 2015. The renewed negotiations aim to overcome past differences and establish a mutually beneficial trade framework.