India and New Zealand have made progress in their Free Trade Agreement (FTA) negotiations, but the issue of dairy market access continues to block a breakthrough.
Commerce and Industry Minister Piyush Goyal met his New Zealand counterpart, Todd McCla, in Wellington as both nations wrapped up the fourth round of talks this week. Negotiations covered trade in goods, services, and rules of origin, with officials aiming for a “balanced and future-ready” pact.
However, New Zealand’s demand for greater access to India’s vast dairy market remains unresolved. India has never opened its dairy sector in any FTA, citing the need to protect millions of small farmers and cooperatives such as Amul and Nandini.
The current talks mark the second attempt at an FTA after earlier negotiations (2010–2015) collapsed over the same issue. Despite a record bilateral trade of $1.3 billion in FY 2024–25, India remains cautious about exposing its dairy industry to global competition.
For now, both countries are focused on finding common ground without compromising India’s agricultural sensitivities, a balance that will determine the pace of the agreement’s finalisation.