India will continue to safeguard its sensitive sectors, including dairy, farmers, and MSMEs, in free trade agreement (FTA) negotiations with New Zealand, Commerce and Industry Minister Piyush Goyal said on Wednesday. He noted that talks for the proposed FTA have made significant progress.

New Zealand has been seeking greater access for its agricultural exports, such as dairy and wine, but India has made it clear that dairy products remain a “red line” due to domestic sensitivities. Both sides are now exploring cooperation beyond tariffs, particularly in areas like farming technology and dairy machinery, Goyal said in Auckland.

“India never compromises on the interests of dairy, farmers, or MSMEs. We always protect vulnerable sectors and respect mutual sensitivities,” he told reporters. Goyal and senior commerce officials are in New Zealand for the fourth round of FTA discussions, which resumed earlier this year after a 10-year break. The two countries had first begun talks 15 years ago but paused after 10 rounds in 2015. Goyal added that only a few more negotiation rounds may be needed, given the recent progress.

New Zealand Prime Minister Christopher Luxon emphasized that people-to-people ties and labour mobility will be key to the deal. “India is vital to New Zealand’s prosperity and security. We’re working hard on a free trade agreement that will open major opportunities for Kiwi businesses in the Indian market,” Luxon said on X.

In 2024, India exported goods and services worth $752 million to New Zealand and imported $791 million. Key Indian exports include pharmaceuticals, gems, textiles, and farm equipment, while imports consist mainly of metals, wood products, wool, and agricultural goods like apples, kiwi fruit, and lamb.