India's Leather Sector Targets $50 Billion by 2030 with New Zealand FTA

On the eve of the signing of the India-New Zealand Free Trade Agreement (FTA), Union Minister for Commerce and Industry Piyush Goyal and his New Zealand counterpart Todd 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.

With the FTA eliminating duties on 100 per cent of Indian exports from Entry into Force, and bringing tariffs on leather and footwear from 5 per cent to zero, Indian exporters are set to gain a decisive competitive advantage.

MoS of Fisheries, Animal Husbandry and Dairying, S.P. Baghel, also participated in the interaction.

The interaction brought together leading industry representatives from the leather and footwear, AYUSH, medical devices, light engineering, and sports goods sectors and Laghu Udyog Bharati, Uttar Pradesh. The industry presented its views reflecting the depth and diversity of India's leather manufacturing prowess, as well as the pharma industry, medical devices industry, and engineering products.

In keeping with Prime Minister Narendra Modi's vision of building trade partnerships that are inclusive, forward-looking, and firmly rooted in India's national priorities, both ministers underscored that the India-New Zealand FTA is far more than a tariff agreement. It is a comprehensive framework encompassing market access, agricultural productivity, investment, talent mobility, collaboration in sports, tourism, and people-to-people ties, designed to benefit manufacturers, farmers, MSMEs, women entrepreneurs, students, and skilled professionals across both nations.

The interaction also covered the pharmaceutical and medical devices sectors. Industry representatives welcomed the FTA's provisions for faster regulatory access, including acceptance of GMP and GCP inspection reports from comparable international regulators, which will reduce compliance burdens and expedite product approvals for Indian manufacturers. They welcomed the inclusion of a dedicated chapter on Health and Traditional Medicine in the FTA, a first for both countries, recognising AYUSH.

Goyal also touched upon the significant opportunities the Agreement creates in education and talent mobility. He urged industry and stakeholders to actively leverage these provisions, encouraging Indian students and professionals to explore the new pathways the FTA opens, and called upon all to view this Agreement as a gateway to a deeper, people-centred partnership between the two nations.

The Industry Engagement Programme at Agra is part of a series of high-level interactions accompanying the landmark signing of the India-New Zealand FTA in New Delhi, concluded in a record nine months since its launch on March 16, 2025, marking a new chapter in bilateral economic relations.

- IANS