India, New Zealand Hold Industry Outreach On FTA Signing Eve

(MENAFN- Live Mint) New Delhi: On the eve of signing of a free trade agreement (FTA) between the two countries, India's Union commerce and industry minister Piyush Goyal and New Zealand minister for trade and investment Todd McClay on Sunday met industry leaders in Agra to outline opportunities for the two sides. The outreach underscores a push to help businesses tap duty-free access and expand trade across key sectors.

Minister of state of fisheries, animal husbandry and dairying S.P. Baghel was also a part of the engagement. The event brought together leaders from industries including leather and footwear, traditional healthcare systems, medical devices, light engineering and sports goods, along with small enterprises.

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According to the government, the two sides said the FTA was more than a tariff agreement and that it constitutes a comprehensive framework covering market access, agricultural productivity, investment, talent mobility, collaboration in sports, tourism and people-to-people ties.

The agreement is expected to benefit manufacturers, farmers, micro, small and medium enterprises (MSMEs), women entrepreneurs, students and skilled professionals of both countries.

Agra, which accounts for around 75% of India's leather footwear production, was highlighted as a major beneficiary of the pact. The city holds a geographical indication (GI) tag for leather footwear and is also a flagship product district under the One District One Product scheme.

With the FTA eliminating duties on 100% of Indian exports from entry into force, and reducing tariffs on leather and footwear from 5% to zero, Indian exporters are expected to gain a significant competitive advantage in the New Zealand market.

Industry representatives said the leather sector has the potential to grow to $50 billion by 2030, supported by a shift from mass production to high value-added manufacturing. In FY25, India's leather and footwear sector turnover was about $24.6 billion, according to the Council for Leather Exports (CLE). This included export of $5.5–5.6 billion.

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They also pointed to complementarity between New Zealand's raw leather resources and India's manufacturing capabilities, with both sides expressing interest in leveraging the opportunity.

The pharmaceuticals and medical devices industry welcomed provisions to expedite regulatory access, including acceptance of good manufacturing practices (GMP) and good clinical practice (GCP) inspection reports from comparable international regulators. The move is expected to reduce compliance burden and accelerate product approvals for Indian manufacturers.

They also welcomed the inclusion of a dedicated chapter on health and traditional medicine in the agreement, a first recognition for 'Ayush' or traditional systems for healthcare.

Addressing the gathering, Goyal said the agreement will create significant opportunities in education and talent mobility, and urged industry and stakeholders to actively leverage these provisions. He encouraged Indian students and professionals to explore the pathways created under the pact and asked businesses to view the agreement as a gateway to a deeper, people-centred partnership.

Describing the FTA as an opening of both doors and minds, he called upon industry bodies to ensure benefits reach every MSME across sectors.

McClay said India is a strategic priority for New Zealand and described the pact as the highest quality FTA New Zealand has concluded. He encouraged businesses on both sides to pursue joint ventures and highlighted significant investment opportunities that his country's businesses see in India's growing economy.

The India-New Zealand FTA was concluded in nine months after negotiations started in March 2025.

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Bilateral merchandise trade between India and New Zealand rose to $1.3 billion in FY25 from $873 million in the previous year, according to the commerce ministry. India's key exports to the country include pharmaceuticals, textiles and clothing, engineering goods, leather products and auto components, while imports from New Zealand include wool, timber, fruits, farm products, etc.

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