India exploring renewed negotiations with New Zealand, South Africa for new FTAs

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Mint. The strategic move is part of India's broader effort to diversify its trade partnerships and reduce its dependency on traditional markets. The scope of India's trade ties with New Zealand and South Africa, which is a key constituent of the South African Customs Union (SACU), is huge as India already shares robust trade relationships with both the countries.

A comprehensive FTA with these countries would further help India diversify its trade relationships and strengthen its position in the global economic order. “New Zealand has reached out to us for FTA talks. We are taking it with priority," said one of the officials cited above, requesting to remain anonymous.

“The geopolitical landscape has shifted, with most developed economies now keen on forging trade alliances with India, recognizing it as one of the fastest-growing major economies," the official added. India is the world's fifth-largest economy in terms of nominal GDP and the third largest by purchasing power parity (PPP). “We are [also] exploring the possibility of initiating trade negotiations with South Africa, a key member of the South African Customs Union (SACU), to broaden our trade portfolio," noted the official.

The commerce ministry also held a stakeholder consultation last week to discuss the way forward for holding discussions on new FTA deals. New Zealand's trade is primarily centered around agricultural products, education services, and technology. The country exports dairy products, wool, and fruits to India, while India exports pharmaceuticals, textiles, and information technology services to New Zealand.