The recently finalized Free Trade Agreement (FTA) between India and New Zealand is set to create new opportunities for Indian exporters. Dr. Shikha Darbari, former Chief Commissioner of Income Tax, highlighted that this agreement is expected to significantly benefit sectors like textiles, marine products, engineering, and MSMEs. The reduced tariffs in the New Zealand market are anticipated to drive up the demand for Indian goods, thereby enhancing the global presence of domestic industries.
Dr. Darbari emphasized that this FTA could lead to increased employment in these sectors, offering a positive impetus to the Indian economy. Valued at approximately $20 billion, the long-term trade agreement aims to double the bilateral trade between the two countries over the next five years. She also noted that this move aligns with Prime Minister Narendra Modi’s vision for global economic growth and showcases the rising confidence of international investors in India.
India’s shift towards more balanced and secure trade agreements with developed nations signifies a strategic evolution in its trade diplomacy, according to Dr. Darbari. This approach underscores the government’s commitment to safeguarding investor interests while positioning India as a significant player in global trade through strategic alliances. She further highlighted that this agreement marks a crucial milestone in positioning India as a leader in international trade.
Under the ‘Viksit Bharat 2047’ vision of the PM Modi government, the expansion of India’s trade footprint through new market openings and foreign trade agreements is expected to bolster the country’s global trade influence. Dr. Darbari emphasized that this move will not only reinforce India’s economic prowess but also establish it as a key player in global commerce. Additionally, she pointed out that the FTA will play a role in promoting the exports of Geographical Indication (GI)-tagged Indian products and value-added agricultural goods, benefiting Indian farmers by securing better prices for their produce and improving their financial well-being.
