India-New Zealand FTA comes into force, dairy stays protected

India-NZ FTA comes into force: Farmers protected, MSMEs to gain wider market access

New Delhi, Oct 20

Commerce Minister Piyush Goyal has said that with duty-free access for 100 per cent of Indian exports to New Zealand, the FTA will unlock significant opportunities for MSMEs, farmers, women, youth and labour-intensive sectors.

"It also opens new pathways for our professionals, while safeguarding India's core interests," Goyal wrote in a post on X.

According to the minister, farmers will gain wider market access for fruits, vegetables, spices and other agricultural produce, alongside cooperation to improve productivity, support higher incomes and strengthen livelihoods.

Sensitive sectors, including dairy, remain protected, keeping farmers' welfare at the heart of the approach, he added.

"On the auspicious occasion of Vijayadashami, both sides will begin a new chapter in their economic partnership as the India-New Zealand FTA comes into force. Truly a 'Vijay' for both nations!" the minister said.

Notably, Goyal said New Zealand will now build with a 'Made in India' JCB machine, flagging off the first-ever JCB machine export to New Zealand, made in Pune, Maharashtra. "India New Zealand FTA is unlocking new opportunities for our manufacturing," he posted.

Trade agreements are not merely about tariff reductions but about creating deep and durable economic partnerships that support trade, investment and supply chain integration, Commerce Secretary Rajesh Agrawal has said.

"FTAs are about creating deep economic partnership," he added.

Agrawal also stated that such FTAs help facilitate faster regulatory approvals and improve the ease of doing business between partner countries.

Moreover, the India-NZ FTA is expected to play a key role in strengthening bilateral ties with the government targeting doubling of trade in the coming years.

The pact sets the stage for facilitating up to $20 billion in investments from New Zealand into India across sectors such as agriculture, manufacturing, infrastructure and startups, according to the Commerce Ministry.

For the services sector, the pact offers wider access to the New Zealand market across IT, professional services, construction, tourism and audio-visual services.

Indian pharmaceutical and medical device exporters are expected to benefit from faster market access as New Zealand will accept inspection approvals from globally recognised regulators, reducing compliance timelines.

— IANS