India's Industry Minister Piyush Goyal met with Air New Zealand Chief Executive Nikhil Ravishankar during his official visit to New Zealand to advance discussions on a Free Trade Agreement (FTA) and strengthen aviation connectivity between the two countries.
The meeting took place alongside the fourth round of FTA negotiations in Rotorua and Auckland, where both sides reported constructive engagement. India's trade with New Zealand reached about US$1.3 billion in fiscal year 2024–25, up 48.6% from the previous year.
A key outcome from the talks was the announcement of planned direct flights between Air India and Air New Zealand by 2028. Minister Goyal said the proposed service would enhance connectivity and business exchange while supporting India's fast-growing aviation network. He described the meeting as productive and added that both parties discussed regional routes and cooperation opportunities in the Indian aviation market.
Ravishankar said Air New Zealand could serve as a platform for Indian businesses to test products and services in New Zealand before expanding globally. He also highlighted that the airline's commercial performance is closely linked to the broader national economy.
The New Zealand carrier, which has faced financial and operational pressures, expects a pre-tax loss of about US$33 million for the six months ending December following the grounding of 11 aircraft due to engine issues. Rising maintenance and leasing costs have added to its challenges.
India's aviation sector is projected to become the world's third-largest by 2030, with growing passenger demand and infrastructure upgrades creating new opportunities for international partnerships. Direct flights between India and New Zealand are expected to improve trade efficiency, tourism, and logistics while supporting cargo movement across the Indo-Pacific region.
Both countries are also exploring cooperation in sustainable aviation, including biofuels and low-carbon operations. Industry observers note that enhanced connectivity could complement broader trade efforts under the proposed FTA, which aims to expand market access in sectors such as agriculture, food processing, and manufacturing.
Ongoing dialogue between New Delhi and Wellington will continue through inter-sessional meetings. Indian officials have suggested that the final agreement could potentially "boost trade tenfold in ten years," positioning the planned direct flights as part of a broader framework linking transport, commerce, and bilateral cooperation.
Source: Aviation A2Z
