India and New Zealand FTA Talks Focus on Agri-Tech and Dairy Market Access

India and New Zealand are in discussions over a free trade agreement (FTA) that involves potential collaboration in the agriculture technology sector and labor mobility. New Zealand Trade Minister Todd McClay has indicated New Zealand's readiness to share agricultural technology to boost farm productivity in India. However, a major sticking point in the negotiations is New Zealand's request for market access for its dairy products, a sensitive issue for India.

Commerce and Industry Minister Piyush Goyal emphasized India's stance on protecting the interests of its dairy industry, farmers, and MSMEs, stating, "India never compromises on the interests of dairy, farmers and MSMEs." Despite New Zealand's desire for market access, especially for high-end dairy items not in direct competition with Indian products, India remains firm on its stance.

The trade discussions are also focused on facilitating easier movement for skilled professionals and improving access for India's IT and services sectors. McClay noted that the New Zealand government is working to ease movement in various sectors, including business, while respecting protocol constraints.

New Zealand Prime Minister Christopher Luxon highlighted the importance of labor mobility talks in the FTA discussions. On the agricultural front, Luxon directed efforts to assist Prime Minister Narendra Modi in his goal of increasing Indian farmers' earnings by 50% by 2030.

In fiscal year 2024, trade between India and New Zealand was valued at $1.54 billion, with India's exports at $538.3 million and New Zealand's at $335.1 million, indicating untapped potential in bilateral trade.