India-New Zealand FTA comes into effect today
The FTA will provide Indian exporters with 100% duty-free access to the New Zealand market, opening opportunities for MSMEs, women entrepreneurs, farmers and artisans. This is expected to facilitate $20 billion in investments into India in 15 years that would create opportunities across manufacturing, infrastructure, agriculture, and innovation.
The India-New Zealand free trade agreement (FTA) officially commenced on October 20, marking a significant milestone in the bilateral relationship between the two nations. Under the agreement, Indian exporters will enjoy 100% duty-free access to the New Zealand market, unlocking opportunities for MSMEs, women entrepreneurs, farmers, and artisans.
This development is expected to attract $20 billion in investments into India over the next 15 years, fostering growth in manufacturing, infrastructure, agriculture, and innovation.
The FTA aims to double bilateral trade in goods and services to NZ$7 billion (approximately ₹35,000 crore) by 2030, requiring an annual growth rate of around 18%. Labour-intensive sectors such as textiles, apparel, leather, and footwear stand to gain from tariff elimination, while engineering goods, pharmaceuticals, machinery, chemicals, and agricultural products will benefit from improved market access.
New Zealand's exports like apples, kiwifruit, and Manuka honey will be safeguarded through tariff-rate quotas, minimum import prices, and other measures.
Commerce and Industry Minister Piyush Goyal emphasized the pact's importance, stating that it is a crucial step in the India-New Zealand partnership. New Zealand Trade and Investment Minister Todd McClay highlighted that the agreement will create opportunities for exporters in key sectors, with 95% of New Zealand's current exports to India benefiting from tariff elimination or substantial reductions.
Additionally, Indian farmers will gain broader market access for fruits, vegetables, spices, and other agricultural products, with cooperation focused on improving productivity, supporting higher incomes, and strengthening livelihoods.
The FTA introduces customs clearance within 48 hours for cargo and 24 hours for express and perishable consignments, while digital certification and self-certification of rules of origin aim to reduce procedural delays and compliance costs. Both nations acknowledge that the partnership extends beyond market access, focusing on building a robust and enduring economic collaboration.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- India-New Zealand FTA: Sheep meat gets zero duty, kiwi fruit at 15% as tariff cuts take effect October 20 livemint.com
- Tariff quota notified for New Zealand fruits, honey economictimes.indiatimes.com
