The India-New Zealand Free Trade Agreement marks a significant milestone in India’s trade diplomacy, ushering in new opportunities for broad economic collaboration. By enhancing market access for Indian products, expanding service offerings, and strengthening ties in agriculture, investment, and emerging sectors, the agreement brings substantial benefits across various industries. Notably, the FTA eliminates tariffs on all Indian exports and includes a $20 billion investment pledge over 15 years to bolster long-term economic and strategic partnerships.
The FTA emphasizes cooperation with farmers through the Agricultural Productivity Partnership to enhance productivity and integrate them into global value chains. It also supports Micro, Small, and Medium Enterprises (MSMEs) and job creation by providing duty-free access to labor-intensive sectors like textiles, apparel, leather goods, footwear, gems & jewelry, engineering products, and processed foods.
Under the agreement, India has granted market access in 70.03% of tariff lines while excluding 29.97% of tariff lines, including products like dairy, animal products, vegetable products, sugar, gems & jewelry, arms, ammunition, and metals. New Zealand reciprocates by immediately eliminating duties on all its tariff lines, benefiting sectors such as textiles, leather goods, ceramics, automobiles, and auto components. Moreover, New Zealand will phase out its average applied tariff of 2.2% by 2025 to zero from the Entry into Force (EIF) date.
New Zealand has committed to specific Action Plans for kiwifruit, apples, and honey to enhance productivity, quality, and capabilities of Indian fruit growers. This collaboration involves setting up Centers of Excellence, providing improved planting materials, offering training to growers, technical assistance in orchard management, post-harvest practices, supply chain management, and ensuring food safety standards. The agreement is expected to deliver widespread benefits, from farmers and MSMEs to students and skilled professionals, reinforcing India’s global standing as a reliable and forward-thinking partner, aligning with the vision of a globally integrated Viksit Bharat 2047.
