New Zealand’s Minister for Trade and Investment, Todd McClay, highlighted the importance of building new connectivity links between New Delhi and Wellington amidst the escalating US-Iran tensions. McClay emphasized the significance of peace in the Middle East and the need for diplomatic resolutions. He mentioned that a free trade agreement (FTA) between India and New Zealand would enhance certainty in trade relationships.
Bilateral trade between the two nations has been on a positive trajectory, with the FTA aiming to further boost trade and solidify a long-term strategic partnership. Trade figures show a steady growth, with total trade increasing from $900 million in 2019-20 to $1.3 billion in 2024-25. India’s exports to New Zealand saw a significant rise, reaching $711 million, while imports from New Zealand also increased to $587 million.
McClay revealed that Air New Zealand is set to establish three offices in India to promote air links between the two countries. He mentioned that Air India and Air New Zealand are seeking regulatory approval to collaborate on flights, leveraging the opportunities presented by the FTA to enhance cooperation and mutual reliance.
The recently signed FTA, effective from April 27, eliminates tariffs on 100% of India’s exports to New Zealand and significantly reduces or removes tariffs on 95% of New Zealand’s imports from India. This agreement aims to strengthen economic ties and foster greater collaboration between the two nations.
