The India-New Zealand Free Trade Agreement (FTA) is expected to enhance investor confidence by granting mutual market access, according to economist Ved Jain. This agreement facilitates improved market access for Indian goods, expands service opportunities, and strengthens cooperation in agriculture and emerging sectors. Jain emphasized that such agreements between countries like India and New Zealand, committed to economic growth, instill positivity among investors towards both economies.
The FTA entails the removal of duties on 100% of Indian exports and includes a $20 billion investment commitment over 15 years to bolster economic and strategic ties. India has granted market access in 70.03% of tariff lines while excluding 29.97% of tariff lines, particularly products like dairy, animal products, vegetable products, sugar, arms, ammunition, gems, and jewelry. This move is aimed at fostering long-term economic cooperation.
Dr. Shikha Darbari, former Chief Commissioner of Income Tax, highlighted that reduced tariffs in New Zealand will spur demand for Indian products, benefiting domestic industries globally. The agreement is anticipated to create job opportunities across various sectors, contributing positively to the Indian economy. With a focus on doubling bilateral trade to $20 billion in the next five years, this trade pact aligns with Prime Minister Narendra Modi’s global economic vision and enhances international investors’ confidence in India.
