New Delhi, April 27
The India-New Zealand Free Trade Agreement, signed on Monday and which gives duty-free access to 100 per cent of India's exports to New Zealand, will give a major boost to MSMEs in the labour-intensive textiles, leather, footwear, engineering goods, and processed food sectors, the Ministry of Commerce and Industry said.
New Zealand's commitment to invest $20 billion in India will fuel agriculture, manufacturing, infrastructure, start-ups, innovators and emerging technologies, the ministry said in a statement.
This is the best-ever market access and services offer by New Zealand, unlocking high-value opportunities for skilled Indian professionals, startups and service-led enterprises, covering 118 service sectors, including computer-related services, professional services, audiovisual services, telecommunication services, construction services, tourism and travel-related services, it said.
The FTA also boosts the mobility of Indian students through post-study work visas and professional pathways in New Zealand, with no numerical caps.
The agreement comes at a time of evolving global and regional dynamics, where reliable partnerships are increasingly important. New Zealand views India as a key partner in promoting regional stability, economic resilience, and shared prosperity.
Commerce and Industry Minister Piyush Goyal said: "At the heart of the agreement is the empowerment for exports, agricultural productivity, student mobility, skills, investment and services. The investment commitment of $20 billion from New Zealand signals strong confidence in India's growth story. It places special emphasis on strengthening MSMEs, fostering innovation, and enabling women-led enterprises to thrive in global markets."
This FTA stands as a testament to a new approach, where trade will drive jobs, empower youth, women and MSMEs, and align seamlessly with the vision of inclusive growth and economic resilience on the path to Viksit Bharat 2047. The FTA will enter into force after the completion of all domestic procedures and ratification in both countries, the statement said.
Earlier, New Zealand maintained peak tariffs of up to 10 per cent on key Indian exports, including ceramics, carpets, automobiles, and auto components.
With zero-duty market access, Indian products will be fully competitive in New Zealand, enjoying a level playing field, directly supporting workers, artisans, women entrepreneurs, youth, and MSMEs across India.
India has offered tariff liberalisation on 70.03 per cent of tariff lines covering 95 per cent of bilateral trade value, while keeping 29.97 per cent of tariff lines out of the ambit of the FTA to protect India's sensitive sectors.
The products that are kept in exclusion are mainly dairy (milk, cream, whey, yoghurt, cheese, etc.). agricultural products (onions, chana, peas, corn, almonds, etc.), sugar, artificial honey, gems and jewellery, and copper and aluminium products.
The FTA streamlines access for pharmaceuticals and medical devices by enabling acceptance of GMP and GCP inspection reports from comparable regulators, including approvals by the US FDA, EMA, UK MHRA, Health Canada and other comparable regulators.
These will reduce duplicative inspections, lower compliance costs, and expedite product approvals, thereby facilitating smoother market access and supporting the growth of India's pharmaceutical and medical devices exports to New Zealand.
On intellectual property, New Zealand has committed to amending its domestic Geographical Indications law within 18 months of the Agreement's entry into force, to enable registration of India's wines, spirits, and 'other goods', extending to India the same treatment previously accorded to the European Union. This opens the door for formal protection of iconic Indian GIs in the New Zealand market.
- IANS
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