New Delhi: The India-New Zealand Free Trade Agreement (FTA) comes into effect on Tuesday, giving Indian exporters duty-free access across the New Zealand market and opening opportunities to expand trade, attract investment and strengthen agricultural cooperation between the two countries.
The agreement is expected to benefit labour-intensive sectors such as textiles, apparel, leather and footwear, where tariffs of up to 10 per cent will be eliminated from the outset. Engineering goods, pharmaceuticals, machinery, chemicals and agricultural products are among the other sectors expected to gain from improved market access, according to the Ministry of Commerce and Industry.
Union Commerce and Industry Minister Piyush Goyal on Monday said New Zealand’s commitment to facilitate USD 20 billion in investments into India under the agreement could support manufacturing, infrastructure, services and employment.
“New Zealand’s commitment to facilitate USD 20 billion in investment into India holds immense potential to strengthen manufacturing, infrastructure, services & innovation, supporting enterprise & employment,” Goyal said in a post on X.
Commerce Secretary Rajesh Agrawal said the agreement was designed to build a long-term economic partnership beyond tariff reductions and access to markets.
“These ties are not only about market access and having more exports to each other,” Agrawal said, highlighting the focus on deeper economic cooperation.
The agreement covers market access across 70 per cent of tariff lines, while India has kept 30 per cent of its tariff lines excluded. For products covered under the agreement, New Zealand will eliminate duties immediately on 30 per cent of tariff lines, with reductions on the remaining lines phased over up to 10 years or implemented through tariff cuts and tariff-rate quotas.
Bilateral trade in goods and services currently stands at USD 2.4 billion. Both countries have set a target of doubling trade to NZD 7 billion, equivalent to around Rs 35,000 crore, by 2030.
The agreement also provides for faster customs clearance, with cargo to be cleared within 48 hours and express and perishable consignments within 24 hours. Digital certification and self-certification of rules of origin for eligible exporters are also envisaged.
In agriculture, the two countries will launch a productivity partnership using New Zealand’s expertise in precision agriculture and related technologies. Cooperation will focus on improving farm productivity and incomes, including through Centres of Excellence for apples, kiwifruit and honey. Sensitive sectors, including dairy, will remain protected under the agreement.
Signed on April 27 and ratified on September 21, the FTA also aims to diversify India’s export markets and strengthen supply-chain links as both countries work towards their 2030 trade target. (ANI)
This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.