New Zealand, India businesses urged to prepare for free trade deal

A business leader has urged enterprises in New Zealand and India to start preparing for the culmination of free trade talks between the two nations.

Edwin Paul, chair of the India-New Zealand Business Council, made the remarks at a business summit alongside Trade Minister Todd McClay and his Indian counterpart during the latter's whistle-stop tour in Auckland on Wednesday.

"New Zealand and India are at the cusp of something special here," Paul said.

"Businesses from both sides should start preparing for the culmination of the free trade agreement. They should start playing out scenarios and initiate strategic partnerships in anticipation of the trade deal."

Paul said half a dozen delegation visits had already been scheduled by both sides over the coming year.

The New Zealand-India Business Forum was organised by the Auckland Business Chamber and India-New Zealand Business Council.

Indian trade chief Piyush Goyal is the first commerce minister from the South Asian nation to visit New Zealand in 18 years.

Goyal has brought a 43-member delegation to the fifth formal round of trade talks between the two countries - the largest such group to visit New Zealand.

Prime Minister Christopher Luxon skipped Question Time on Wednesday to fly to Auckland for a meeting with Goyal.

Speaking at Parliament before heading to the airport, Luxon said it was important to meet Goyal face to face.

"The fact that he's come down to New Zealand is a really big sign of the conversation, the progress that we're making, and it's a really important relationship for New Zealand so it's important I spend some time with him," Luxon said.

At the summit on Wednesday, India's trade czar called on both governments to consider introducing dual degrees that tertiary students from New Zealand and India could leverage to gain experience overseas.

The Indian minister said he had developed a good relationship with McClay since trade negotiations began.

"We have developed a deep personal friendship over the last year and a half, where we respect each countries' sensitivities," Goyal said.

"When we started negotiations this time, we decided to start afresh," he said.

"We told each other we won't go into old files. ... So probably, this time around, we can do it [FTA]."

McClay told participants at the summit in Auckland he was planning on visiting India next week to attend a trade conference in the South Asian nation.

McClay said the New Zealand or Indian prime ministers wouldn't have been advised to restart FTA negotiations unless both sides were confident of getting it across the line.

India's trade chief attended business and community events in Auckland on Wednesday before heading to Rotorua with McClay on Thursday to continue free trade negotiations and meet Indian businesses in the North Island tourist hub.

Addressing hundreds - predominantly members of the Indian community - at Auckland's Mahatma Gandhi Centre, Goyal hailed India's success over the past decades.

"India has transformed itself from being one of the fragile five economies to one of the top five economies," the Indian minister said, urging New Zealand to be a part of India's growth story.

"A free trade agreement between our two nations will send a big message to the world that the India-New Zealand friendship is strong.

"I have full confidence [that the] Kiwi-Bharat story has a bright future."

Speaking to reporters, Luxon highlighted the issue of the high visa rejection rate for Indian nationals when they apply for New Zealand visas.

"Conversations about labour mobility are a huge part of these FTA negotiations," Luxon said.

"There is work our immigration services need to do to make it easier. We are very open to working on that from both sides."

Goyal's highly symbolic trip follows Luxon's trade mission to India in March and Indian President Droupadi Murmu's visit to New Zealand last year.

It also follows multiple visits to India by McClay and Foreign Minister Winston Peters since the 2023 election.

The government has vowed to strengthen New Zealand's trade and economic partnership with India, which is projected to become the world's third-largest economy in coming years.

In a 2023 election debate, Luxon promised his administration would sign a free trade agreement with India in its first term.

New Zealand's previous free trade negotiations with India, which took place between 2011 and 2015, were hindered by obstacles, particularly around dairy exports.

Talks ended after India joined the Regional Comprehensive Economic Partnership, which the South Asian nation exited in 2019.

India is New Zealand's 12th two-way trading partner, with total trade value reaching $3.14 billion in 2024.

India is New Zealand's 25th largest goods export market - valued at $718 million - mainly in forestry and agricultural products, including wool, timber and apples.

Goyal is expected to be in New Zealand through Saturday.