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Trade Minister Phil Goff said "strong progress" is being made towards a free trade agreement with India after talks with Indian Commerce Minister Kamal Nath last night.
Mr Goff said a study group, which has met twice since being set up last year, had made progress and discussions "around the shape of an FTA negotiation have been very constructive".
Mr Goff hoped the study process could be complete by the year's end.
"This would enable negotiations on a free trade agreement to commence quite soon afterwards."
Trade between the countries was $630 million but Mr Goff said that was far below its potential.
An FTA would address tariff barriers, which would help agriculture, but also other potential barriers such as technical barriers to trade, sanitary and phyto-sanitary restrictions and customs procedures.
"I am particularly pleased that the study is a comprehensive one, looking at all aspects of our trading relationship," Mr Goff said.
Cabinet Minister Jim Anderton was also at the meeting.
- NZPA
