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India-New Zealand FTA: Zero Duty Access, $20B Investment Boost

India and New Zealand have signed a landmark Free Trade Agreement (FTA) securing zero-duty access for all Indian exports. Union Commerce Minister Piyush Goyal announced that New Zealand will invest $20 billion in India over the next 25 years. The agreement also establishes partnerships in education, technology, and traditional medicine. Goyal expressed hope for implementation by the end of this year, while criticizing the Indian opposition for not supporting such national interest matters.

Key Points: India-New Zealand FTA: Zero Duty, $20B Investment

  • Zero-duty access for all Indian exports to New Zealand
  • $20 billion investment commitment over 25 years from New Zealand
  • Partnerships in education, technology, traditional medicine
  • Implementation expected by end of 2024
3 min read

It will be a highly beneficial FTA: Union Commerce Minister Piyush Goyal on India-New Zealand FTA

India and New Zealand sign FTA securing zero-duty access for all Indian exports and a $20 billion investment commitment over 25 years, says Union Minister Piyush Goyal.

"It will be a highly beneficial FTA - Piyush Goyal"

New Delhi, April 28

India and New Zealand reached a milestone in their economic relations through the India-New Zealand Free Trade Agreement, which secured zero-duty access for all Indian exports and a massive long-term investment commitment.

Union Minister Piyush Goyal, while addressing the media, confirmed that the agreement established a comprehensive framework for cooperation across education, technology, and traditional medicine. The deal specifically targeted a significant increase in foreign direct investment from New Zealand over the next quarter-century to boost domestic industry and employment.

"100% of goods that can be imported from India to New Zealand will now be subject to zero duty...Partnerships in education, sports, culture, agriculture, productivity and technology, intellectual property, and traditional medicine, including AYUSH and Maori traditions, have also been established. A unilateral agreement has been signed in the fields of traditional medicine...It will be a highly beneficial FTA," Goyal said.

The Minister highlighted a substantial shift in the scale of bilateral capital flow. He noted that while New Zealand's past contributions to India's foreign direct investment remained modest, the new agreement set the stage for a transformational influx of capital. This investment aimed to support India's development goals during the "Amrit Kaal" period.

"Most importantly, New Zealand, which has invested only Rs 70 million in foreign direct investment over the last 25 years, or Rs 600-650 crore at today's exchange rate, will invest USD 20 billion dollars (approximately Rs 2 lakh crore) in India in the next 25 years. This massive investment will create millions of new employment opportunities, provide a major boost to business and industry, and enable us to move forward more rapidly in the 'Amrit Kaal'," the Minister added.

Regarding the legislative progress of the pact, Goyal indicated that the agreement enjoyed broad political support in New Zealand. He expected the formal approval process to conclude shortly, allowing for implementation by the end of the current year.

However, commenting on the domestic political landscape in India, contrasting it with the bipartisan consensus seen abroad, Goyal said, "Both the opposition and the ruling party (of New Zealand) are supporting it....This FTA will be approved there soon, and we will implement it before the end of this year. If only the opposition in India, too, had performed its duties responsibly in matters of national interest, where the people of the country are benefiting, where the country's development journey is gaining momentum, where the poor, farmers, fishermen, and the MSME sector and industry are benefiting, then perhaps the country's journey would have been smoother and the country could have progressed at a faster pace."

- ANI

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Reader Comments

P
Priya S
Finally an FTA that includes traditional medicine! AYUSH and Maori traditions collaboration is a smart move. New Zealand has excellent dairy tech too, maybe we can learn from them for our Amul and cooperative sector. But I hope our MSMEs are protected from sudden competition.
J
James A
As someone who works in international trade, the zero-duty access is genuinely impressive. But the Minister's dig at the opposition was unnecessary. Bipartisan support is always good, but using a trade agreement to score political points helps no one. The deal should speak for itself.
R
Rohit P
Education and technology partnerships are the real winners here. Our students going to NZ, their universities setting up campuses here - that's long-term soft power. The 20 billion investment seems like a dream figure though. Hope the fine print has strong binding commitments, not just intentions.
K
Kavya N
Good for larger industries, but what about our farmers? Dairy farmers especially need protection - New Zealand is a dairy powerhouse. Also, Maori traditional medicine collaboration is interesting - could boost our herbal exports. Let's wait for details on the "unilateral agreement" in traditional medicine.
S
Sarah B
The bipartisan support in NZ is refreshing to see. Meanwhile, our opposition parties can't even agree on a simple trade deal without trying to score points. The Minister's point about national interest was valid - we need more consensus on development issues, not less.

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