India-New Zealand FTA: Piyush Goyal Unveils $5 Billion Trade Goal

Addressing the India-New Zealand Business Forum here along with his New Zealand counterpart, Todd McClay, the minister highlighted how India's vast market, skilled talent, digital capabilities, and manufacturing strengths complement New Zealand's expertise in agri-tech, clean energy, and fintech.

"The strong participation and ideas shared by business leaders from both sides highlighted the vast potential for deeper trade, investment, and innovation-led collaboration among our nations," Goyal said.

Concluded in a record nine months, the FTA marks a significant milestone in strengthening bilateral ties. With current trade estimated at $1.3 billion in goods and $634 million in services, both countries aim to scale this to $5 billion over the next five years. A strong Indian diaspora of nearly 300,000 people in New Zealand continues to serve as a vital bridge in this partnership.

In a global environment marked by trade uncertainties and shifting supply chains, this agreement underscores India's strategic diversification across the Indo-Pacific and its commitment to building resilient, inclusive, and future-ready economic partnerships, according to an industry body

The FTA with New Zealand is unlocking the potential for trade and investment, with duty-free access for 100 per cent of India's exports to New Zealand. This is down from the 10 per cent tariff New Zealand currently levies on about 450 tariff lines that India exports, including textiles and apparel products, leather and headgear, ceramics, carpets, and ⁠automobiles and auto components.

The FTA also includes a provision wherein New Zealand will invest $20 billion in India over 15 years. This is in the same vein as the $100 billion investment 'commitment' the European Free Trade Association made in their FTA with India.

Besides, the FTA includes several provisions relating to the mobility of working professionals and students. New Zealand has signed an annex on student mobility and post-study work visas for the first time with any country. Under this, Indian students can work up to 20 hours per week while studying in New Zealand, with extended post-study work visas.

Further, the agreement includes a quota of 5,000 visas for skilled Indians for a stay of up to three years in the sectors of interest to India, which include AYUSH practitioners, yoga instructors, chefs, and music teachers, as well as other key sectors such as IT, engineering, healthcare, education, and construction.

Under the Working Holiday Visa programme included in the agreement, 1,000 young Indians annually can avail multiple entries in New Zealand for a period of 12 months.

India has also managed to keep several items out of the FTA, including all dairy products such as milk, cream, whey, yoghurt and cheese, as well as farm products.

- IANS