New Zealand and India Restart FTA Negotiations: A Fresh Opportunity for Canterbury

The announcement that New Zealand and India will resume negotiations for a comprehensive Free Trade Agreement (FTA) starting in April 2025 is welcome news for Canterbury’s exporters and education providers. After nearly a decade of stalled talks—largely due to long‐standing differences over market access for sensitive sectors such as dairy—this fresh round of negotiations signals renewed commitment from both governments to unlock new opportunities for trade, investment, and economic cooperation.

Opportunities for Canterbury’s Exporters

Canterbury’s economy thrives on its export strength, with sectors such as dairy, horticulture, technology, and manufacturing playing a crucial role. India, as one of the world’s fastest-growing major economies, presents an immense opportunity to expand our market reach.

However, it’s important to be realistic about the scope of this FTA. India has a long history of protecting its agricultural sector, particularly dairy, to safeguard its millions of small-scale farmers. This means traditional dairy exports, like milk powder, are unlikely to be a major focus of negotiations. Instead, Canterbury exporters may find greater success in value-added dairy products, premium food and beverage items, AgriTech solutions, and advanced manufacturing. The barriers to date have meant that New Zealand has struggled to gain real traction in this massive market. However, this also means there is enormous room for growth. A well-negotiated FTA could unlock new trade opportunities, allowing Canterbury businesses to diversify their export destinations and reduce reliance on a small number of markets.

India-NZ Trade: By the Numbers

Statistics from StatsNZ's International Trade Dashboard

In the December 2024 quarter, New Zealand exported $173.73 million of total goods to India and imported $315.24 million, representing a trade balance of $-141.51 million and a total trade value of $488.98 million. This represented 0.9% of all exports of total goods in this time period and 1.6% of imports. For trade in total goods India ranked 21 of 206 for highest export value, 14 of 214 for highest import value, and 15 of 235 for highest total trade value.

Boosting Canterbury’s Education and Local Economy

Beyond goods and services, this FTA has strong potential benefits for Canterbury’s education sector. India has a growing middle class with an increasing appetite for quality international education. New Zealand has already seen a rise in Indian student enrolments, and a well-negotiated trade agreement could further streamline visa processes, encourage student exchanges, and strengthen academic partnerships.

A boost in Indian student numbers would directly benefit Canterbury’s local economy. International students contribute not only through tuition fees but also through accommodation, retail, hospitality, and tourism. More students mean more jobs and a stronger GDP for our region.

Looking Ahead

While it’s still early days in the negotiation process, this FTA presents an exciting opportunity for Canterbury’s businesses, educators, and communities. The key will be ensuring that we secure access to high-value sectors where we have a competitive edge. If done right, this agreement could help future-proof our regional economy by tapping into one of the world’s most dynamic markets and reducing dependence on our existing trade partners.

As discussions progress, Canterbury’s business and education sectors should actively engage with policymakers to ensure our interests are well-represented. By leveraging our strengths and forging new partnerships, we can build a more resilient and prosperous future for the region. 

If you need further support in this area, feel free to contact me at danielt@cecc.org.nz.