India and New Zealand FTA Signed: ‘Once-In-A-Generation’ Pact

According to Union Commerce and Industry Minister Piyush Goyal, India and New Zealand inked a free trade agreement (FTA) on Monday with the goal of increasing investment and two-way trade. Todd McClay, the New Zealand Trade and Investment Minister, was present when the agreement was signed.

Goyal describes the deal as “India’s first women-led” free trade agreement (FTA) and a “defining milestone” in the nation’s bilateral economic journey in a post on social media platform X. The agreement, he continued, “reflects deep mutual trust, shared ambition, and a common commitment to prosperity.” It was completed in 9 months.

Key aspects of the India-New Zealand Free Trade Agreement

• New Zealand has committed to investing 20 million dollars over the next 15 years. Reports according to the fact sheet released by both governments.
• The elimination of all duties on Indian exports to New Zealand is another important aspect of the FTA.
• Additionally, the FTA will permit Indian experts to work temporarily in New Zealand. At least 5000 visas, known as the “Temporary Employment Entry VISA,” will be granted to Indian professionals in skilled occupations under the FTA, which opens skilled employment pathways, for a maximum stay of 3 years.
• Indian goods will enter New Zealand duty-free, including labour-intensive industries like textiles, plastics, leather goods, and technical goods.

• Indian duty-free wine and spirits, as well as New Zealand wines, will be introduced to the domestic market. It will be there at concessional duties that will be progressively lowered over a ten-year period.
• In the meantime, 70.03% of India’s tariff lines have been opened to New Zealand. It accounts for 95% of its current imports.
• Exports of the oceanic Nations’ wool, wine, timber, coal, and fruits like blueberries and avocados are anticipated to be profitable.
• Additionally, the FTA will permit agricultural cooperation and contain a strategy to assist Indian farmers in producing Honey, apples, and kiwis.

FTA Target: What it means

Approximately $1.3 billion is currently traded between the two nations. Within 5 years, the goal is to increase this to 5 billion dollars. The agreement should be viewed as a broader opportunity. Statement by Piyush Goyal.