New Delhi: India and New Zealand have completed the second round of negotiations for a free trade agreement (FTA), with both sides registering progress across key sectors, the commerce ministry said in a statement on Friday.

The discussions, which concluded on 25 July in New Delhi, focused on deepening trade and investment ties and reflected growing alignment on a range of commercial and regulatory issues. 

The third round is slated for September in New Zealand, the ministry said.

The development comes a day after India and the United Kingdom signed a landmark free trade agreement, adding to India’s growing portfolio of bilateral trade agreements, including those with Australia and the UAE.

The latest talks between India and New Zealand were held from 14-25 July and saw advancement in several negotiating pillars, including trade in goods and services, investment, rules of origin, customs procedures, technical barriers to trade, sanitary and phytosanitary measures, and economic cooperation. 

Negotiators from both sides indicated that early convergence had been achieved on multiple texts, and virtual intersessional meetings will be held to sustain momentum until the next in-person round.

The FTA discussions were formally launched during New Zealand Prime Minister Christopher Luxon’s visit to India in March, when he met with Prime Minister Narendra Modi. 

Both sides announced the launch of negotiations for a free trade agreement as part of efforts to deepen economic cooperation amid growing concerns over a potential global tariff war triggered by US President Donald Trump’s aggressive trade stance.

Mint was the first to report on India exploring renewed FTA negotiations with New Zealand, in a report dated 26 June 2024.

The first round of negotiations between the two countries began in May 2025 in New Delhi. The latest round of talks signals steady movement towards what officials described as a “balanced, comprehensive, and forward-looking agreement”.

India’s merchandise trade with New Zealand reached $1.3 billion in 2024-25, up nearly 49% from FY24, albeit from a relatively modest base. 

Trade analysts said an agreement with New Zealand, while smaller in scale compared with India’s deals with the UK and the EU, would help New Delhi stitch a more strategic Indo-Pacific trade network. 

“New Zealand is a gateway to the Pacific and has a relatively high per capita import appetite,” said Abhash Kumar, a trade economist. “A well-negotiated deal will give Indian firms a secure and rules-based market while opening possibilities for trilateral arrangements with Australia or ASEAN (Association of Southeast Asian Nations).”

India is focusing on improving access for sectors such as pharmaceuticals, textiles, information technology services, and agri-products, while New Zealand is expected to push for gains in dairy, meat, wine, and education services.