Amitabh Kant Hails India-New Zealand FTA as Future-Ready Pact

Kant joined celebrations at the New Zealand High Commission marking the conclusion of the FTA. He added that the FTA opens up significant opportunities across goods and services trade, digital economy, agri value chains, and innovation-led industries.

In a landmark development for Indo-Pacific economic relations, New Zealand and India have finalised a historic Free Trade Agreement (FTA), hailed by leadership in both nations as a transformative milestone. While Wellington views the pact as a critical gateway to the world's most populous consumer base, New Delhi has framed the deal as part of an unprecedented surge in its global trade diplomacy, with further major agreements with the US and EU on the horizon.

In a post on X on Wednesday, Kant said, "Delighted to join the celebrations marking the conclusion of the India-New Zealand Free Trade Agreement at the New Zealand High Commission. This agreement reflects a shared commitment to building resilient supply chains, enabling greater market access, and strengthening economic cooperation between two vibrant democracies. The FTA opens up significant opportunities across sectors, including goods and services trade, digital economy, agri value chains, and innovation-led industries.

Kant complimented Commerce Minister Piyush Goyal and New Zealand Trade Minister Todd McClay for their leadership, saying their efforts "ensured a balanced and ambitious outcome that aligns with the aspirations of both economies."

"Compliments to Piyush Goyal and Todd McClay for their leadership in advancing this forward-looking agreement. Their efforts have ensured a balanced and ambitious outcome that aligns with the aspirations of both economies. This partnership is an important step in shaping a more integrated and future-ready Indo-Pacific, anchored in openness, sustainability, and shared prosperity," the post added.

In a video address shared on the social media platform X on Wednesday, New Zealand Prime Minister Christopher Luxon highlighted the immense scale of the Indian market. "Well, look, you've probably heard about the Indian FTA getting signed in India over the weekend, and this is fantastic news because it's a once-in-a-generation opportunity for New Zealand. Why do I say that? Well, it's pretty simple. India is now the most populous country on planet earth," the Prime Minister said.

Elaborating on the demographic shift, Luxon noted that India's population of roughly 1.5 billion people is becoming increasingly affluent. "They have about one and a half billion people inside the country. They're increasingly getting wealthier, and as a result, they want to consume higher quality products and services from places like New Zealand. And, importantly also, it's going to become the world's third largest economy," he added.

The Prime Minister emphasised that the agreement allows New Zealand to integrate itself into India's rapid economic ascent. He stated, "So there's a huge opportunity for New Zealand to grow with India as India moves from low-income to middle-income, demanding more of New Zealand's products and services."

Addressing the specifics of the trade benefits, Luxon pointed out that the deal provides immediate relief from restrictive trade barriers. "Of about the 95 per cent of stuff that we export to India, the good news is that right from day one, 57 per cent is tariff-free, and it moves up over the course of the agreement. So we get more and more of our goods not having to deal with the extra costs," he said.

The reduction in tariffs is expected to significantly level the playing field for Kiwi exporters on the global stage.

Luxon remarked, "It makes them much more competitive. It means that we can compete with products from all around the world in the Indian marketplace as it grows."Complementing this perspective from New Delhi, Commerce and Industry Minister Piyush Goyal announced that the newly inked pact marks the seventh such agreement finalised during his tenure over the last three-and-a-half years. Goyal, alongside New Zealand's Trade and Investment Minister Todd McClay, signed the deal on Monday, which is slated to become operational by the end of this year.

Highlighting the rapid pace of India's trade diplomacy, Goyal revealed that the government is poised to secure further landmark deals with major Western powers.

"With this India-New Zealand FTA, it is the seventh free trade agreement that I am signing in the last three and a half years. Two more to go very soon in the next few months with the European Union EU and the United States of America USA," Goyal stated.

The minister's remarks underscore a period of high activity for the government, which has successfully concluded partnerships with the UAE, Australia, the UK, and the EFTA bloc.

This momentum persists as an Indian delegation recently concluded a mission to Washington to finalise the inaugural phase of a bilateral trade deal with the US, focusing on market access and digital commerce following a framework established on 7 February.

- ANI