India, New Zealand set to sign key FTA to double trade, boost ties
New Delhi, April 27
India and New Zealand are set to sign a long-awaited free trade agreement on Monday to significantly boost bilateral trade, investments and market access across sectors.
The agreement will be signed at Bharat Mandapam in the presence of Union Commerce Minister Piyush Goyal and his New Zealand counterpart, Todd McClay.
The pact is aimed at doubling bilateral trade to $5 billion over the next five years and is expected to open new avenues for Indian exporters, particularly at a time when global uncertainties, including tensions in West Asia, are impacting trade flows.
It will also facilitate an estimated $20 billion investment from New Zealand into India over the next 15 years across sectors such as manufacturing, infrastructure, services, innovation and job creation.
Under the agreement, Indian companies will gain duty-free access to New Zealand's markets, while New Zealand will see tariffs eliminated or reduced on about 95 per cent of its exports to India.
These include products such as wool, coal, wood, wine, seafood, cherries, avocados and blueberries.
However, India has kept sensitive sectors like dairy, onions, sugar, spices, edible oils and rubber outside the scope of tariff concessions to safeguard domestic farmers and industries.
New Zealand will also receive quota-based tariff reductions for key exports such as kiwifruit and apples.
At the same time, it will enjoy duty-free access to items including sheep meat, wool and forestry products, while benefiting from reduced duties on products like Manuka honey, infant formula and certain seafood items.
A key feature of the pact is enhanced mobility for professionals. New Zealand has agreed to provide a temporary employment visa pathway for up to 5,000 Indian professionals annually, allowing stays of up to three years.
The pact also includes provisions to address non-tariff barriers through better regulatory cooperation, streamlined customs procedures and improved sanitary and phytosanitary measures.
On Sunday, Goyal and McClay participated in an Industry Engagement Programme at Agra.
"New Zealand's rich raw leather resources, combined with India's manufacturing capabilities, offer a strong complementarity that both sides expressed keenness to harness. On the occasion, both ministers, along with Industry representatives, spoke of positioning Agra as a global sourcing destination, an employment engine, and an export powerhouse on the world stage," the Commerce Ministry statement said.
Agra, which accounts for approximately 75 per cent of India's leather footwear production, holds a Geographical Indication (GI) tag for its leather footwear and is a flagship product under the One District One Product scheme.
— IANS
Reader Comments
Honestly, I'm a bit skeptical. We always hear about FTAs doubling trade, but the ground reality is different. Take the dairy sector—yes, we kept it out, but what about the thousands of small farmers? They'll still feel the heat from imported wool, sheep meat, and even wine. And $5 billion target over 5 years? That's just 1% of our total trade. Why make such a big deal about it? Feels more like political showmanship. 😕
As an Indian living in New Zealand for a decade, this is amazing! Kiwis love Indian food, yoga, and Bollywood, and now our businesses can thrive here. The visa pathway is a game-changer—young Indian professionals finally have a direct route. But the real winners? Indian students who can now get post-study work visas more easily. And honestly, New Zealand's sheep meat and dairy are top-notch; competition will make our domestic producers up their quality. Win-win, I'd say. 🎉
I love that Agra is being positioned as a global leather hub! Our artisans are the best in the world, and this GI tag recognition is big. But we need to ensure fair wages for workers—not just corporate profits. Also, I worry about the environment: New Zealand is green and sustainable; what about our compliance? We must match standards. The deal is exciting but execution matters. Let's not repeat the mistakes of past FTAs. 🌍
This is great for exporters in the leather, textiles, and pharma sectors—finally duty-free access to a developed market. But I wish the government had also negotiated for easier movement of IT professionals. The quota of 5,000 seems low when you consider the demand for Indian coders and engineers. Also, why is wine and kiwifruit getting reduced tariffs? That benefits only the rich.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.