India, New Zealand Sign Landmark FTA To Boost Trade, Investment

(MENAFN- KNN India) New Delhi, Apr 27 (KNN) India and New Zealand on Monday signed the long-awaited India–New Zealand Free Trade Agreement (FTA) in the presence of Commerce and Industry Minister Piyush Goyal and New Zealand's Trade and Investment Minister Todd McClay.

The agreement is expected to significantly strengthen bilateral economic ties by boosting trade, enhancing market access and encouraging investment flows between the two countries.

Aim to double trade, attract investments

The FTA seeks to double bilateral trade from current levels and is expected to bring in around USD 20 billion in investment into India over the next 15 years. Bilateral trade currently stands at about USD 2.4 billion, with merchandise trade at USD 1.3 billion in 2024–25.

Under the pact, all Indian exports to New Zealand will enjoy duty-free access, benefiting labour-intensive sectors such as textiles, leather, plastics and engineering goods.

Speaking ahead of the signing, Piyush Goyal highlighted that the agreement would open significant opportunities for Indian businesses, including leather exporters in Agra.

Services and mobility gains

India has secured market access commitments in key services sectors, including IT and IT-enabled services, professional services, education, financial services and tourism and construction.

A key feature is the Temporary Employment Entry Visa pathway, allowing up to 5,000 Indian professionals to work in New Zealand for up to three years.

Market access for New Zealand

Following a framework similar to India's pact with Australia, India has opened around 70 percent of its tariff lines to New Zealand.

Duty concessions will apply to products such as apples, kiwifruit, manuka honey, wool and sheep meat. Tariffs on items like iron, steel and scrap aluminium will be reduced gradually over a period of up to 10 years.

Safeguards for sensitive sectors

India has protected key domestic sectors by placing several items on the exclusion list, including dairy products, pulses and certain agricultural commodities, sugar and edible oils, gems and jewellery and copper and aluminium products.

Some agricultural imports will also be subject to tariff-rate quotas and minimum import prices.

Comprehensive agreement

The FTA includes 20 chapters covering trade in goods and services, rules of origin, customs procedures, sanitary and phytosanitary measures, dispute resolution and legal frameworks.

The agreement marks a major step in strengthening India's Indo-Pacific trade strategy, while offering New Zealand improved access to one of the fastest-growing major economies.

Both sides said the pact would enhance supply chain integration, create new business opportunities and deepen long-term economic cooperation.

(KNN Bureau)

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