India to protect dairy, MSMEs in FTA with New Zealand: Piyush Goyal

Commerce Minister Piyush Goyal said India will not compromise on sensitive sectors like dairy and MSMEs in its proposed trade pact with New Zealand, where talks have seen major progress

India “consistently protects the interests of its vulnerable sectors in free trade agreements (FTAs), Commerce and Industry Minister Piyush Goyal said on Wednesday, adding that significant progress has been made in negotiations for a proposed deal with New Zealand.

 

New Zealand is pushing for greater market access for agricultural products, including dairy and alcoholic beverages such as wine. India, however, has consistently maintained that dairy products, including milk and butter, are a “red line” due to political sensitivities.

 

Both countries are now going beyond tariffs and looking at new ways to expand their relationship in FTA talks. India can look at increasing cooperation in farming technologies, such as dairy machinery, said Goyal in Auckland.

 

 

“India never compromises on the interests of dairy, farmers and MSMEs. We consistently protect the interests of vulnerable sectors. We respect each others’ sensitivities...we will not touch such issues,” Goyal told reporters in Auckland.

 

Goyal and a team of senior commerce department officials are in New Zealand to push FTA negotiations, which are in the fourth round.

 

India and New Zealand in March announced the restart of “comprehensive and mutually beneficial” FTA negotiations after a 10-year hiatus. The two countries initiated negotiations 15 years ago, but discussions stalled after 10 rounds. There has been no formal round of negotiations since February 2015.

 

Goyal also said that there may not be a need for many more rounds of negotiations as significant progress has been made.

 

People-to-people relationships and labour mobility will be an important part of the conversation for the proposed FTA, New Zealand Prime Minister Christopher Luxon said.

 

“India is a country of huge importance to New Zealand’s prosperity, security, and society. We’re working hard on a New Zealand-India free trade agreement that would create massive opportunities for Kiwi businesses in the Indian market. I joined Trade Ministers McClay and Goyal in Auckland tonight as we continue that work,” Luxon said on X.

 

India exported goods and services to New Zealand worth $752 million in 2024, while imports totalled $791 million. Merchandise exports were valued at $538 million, while imports amounted to $335 million.

 

India mostly imports iron and steel, aluminium, scrap metals, logs and forestry products, wood pulp, wool, apples, kiwi fruit, lamb, and nuts from New Zealand. Exports include medicines, precious metals and gems, textiles and non-knitted apparel, and agricultural equipment.

 

With inputs from PTI