India and New Zealand Free Trade Agreement to Benefit Various Sectors

Commerce and Industry Minister Piyush Goyal announced that the India and New Zealand free trade agreement (FTA) will lead to zero duty on all of India’s exports, benefiting farmers, MSMEs, workers, artisans, women-led enterprises, and youth. This agreement will provide significant opportunities for labor-intensive sectors like textiles, apparel, leather, footwear, engineering, manufacturing, automobiles, electronics, machinery, plastics, pharmaceuticals, and chemicals. New Zealand has committed to facilitating $20 billion in FDI into India over 15 years, focusing on manufacturing, infrastructure, services, innovation, and job creation.
Goyal highlighted that the FTA will empower farmers by opening up new markets in New Zealand for Indian agricultural products such as fruits, vegetables, coffee, spices, cereals, and processed foods. The agreement also includes provisions for agricultural productivity partnerships, centers of excellence, and access to advanced agri-technologies from New Zealand to enhance productivity, quality, and incomes for farmers. Specific initiatives for horticultural products like honey, kiwifruit, and apples aim to support sustainable growth in the sector.
In consideration of domestic concerns, India has safeguarded agriculture and allied products, including dairy, sugar, coffee, spices, edible oils, precious metals, copper cathodes, and rubber-based products. The FTA also presents new opportunities for India’s services sector, covering IT, finance, education, tourism, and construction. Notably, Indian professionals and students will benefit from enhanced mobility provisions, including working holiday visas, post-study work pathways, and a dedicated quota of 5,000 temporary employment visas for skilled Indian professionals.
The agreement further includes improved market access and services offer by New Zealand to India, encompassing various sectors like computer-related services, professional services, audio-visual services, telecommunication services, construction services, and tourism. Additionally, a new Temporary Employment Entry Visa pathway for Indian professionals in skilled occupations has been established, with a quota of 5,000 visas at any given time and a stay of up to three years.
The FTA addresses non-tariff barriers through enhanced regulatory cooperation, transparency, and streamlined customs, sanitary and phytosanitary measures, and technical barriers to trade disciplines. New Zealand Prime Minister Luxon expressed optimism about the FTA, emphasizing the benefits it will bring to New Zealand’s farmers, growers, and businesses by boosting exports, creating jobs, and increasing incomes.