Prime Minister Christopher Luxon landed in New Delhi with a mission—reviving trade talks with India. But if you’re thinking, Wait, haven’t we been here before?—you’re not wrong. New Zealand and India have been flirting with the idea of a free trade agreement (FTA) for over a decade, only for negotiations to stall back in 2016. So, what’s changed? Why is there fresh energy around the idea now?
Starting Fresh or Picking Up the Pieces?
On Sunday, India’s commerce and industry ministry made it official: negotiations for a comprehensive trade deal with New Zealand are back on the table. The wording of their announcement was interesting—launching talks, not restarting them. Why? Because, according to Luxon, the previous government had effectively shelved the discussions since 2017. From his perspective, this isn’t about dusting off old notes—it’s about building a deal from the ground up.
At a press conference in Delhi’s ITC Maurya Hotel, Luxon addressed the elephant in the room: Is this really a new beginning, or just a political rebranding? His stance was clear—the talks had gone cold, and his government is reigniting them from scratch.
Why India is Willing to Talk Now
Trade Minister Todd McClay has been laying the groundwork for this for over a year, meeting India’s Trade Minister Piyush Goyal half a dozen times in the past 16 months. Luxon himself had a face-to-face with Prime Minister Narendra Modi at the ASEAN-India Summit last year.
Now, India seems willing to engage in discussions that once seemed impossible. For New Zealand, that’s a major diplomatic win—getting an economic giant like India back to the negotiating table is no small feat.
The Dairy Dilemma: A New Approach
Historically, the biggest roadblock has been dairy. New Zealand is a dairy powerhouse, while millions of Indian farmers rely on small-scale dairy production for their livelihoods. India has resisted opening its markets to foreign dairy products, fearing economic disruption for its farmers.
But here’s where things take an interesting turn—Luxon isn’t making dairy the centerpiece of the deal. Sure, getting better access for New Zealand’s dairy industry would be great, but he’s willing to focus on other sectors if that’s what it takes to move forward. His stance? Don’t let perfect be the enemy of good.
What’s on the Table?
Beyond dairy, both countries are looking at potential agreements in aviation, technology, and education. New Zealand’s universities have long been a popular choice for Indian students, and expanding that relationship could be a major win for both sides.
Luxon will also be traveling to Mumbai, India’s financial hub, where more deals and partnerships could take shape.
What Does Success Look Like?
No one is expecting Luxon to return home with a fully signed free trade deal—it’s too early for that. But if this trip lays a strong foundation, strengthens diplomatic ties, and results in meaningful agreements in key industries, that would be a win in itself.
For now, the key takeaway is this: New Zealand and India are serious about making this work, and for the first time in years, it feels like real progress is possible.
