The India-New Zealand FTA comes into effect on October 20, aiming to double bilateral trade to NZ$7 billion by 2030.
Textiles, leather, footwear, pharmaceuticals and engineering goods are among the sectors expected to benefit.
The agreement also provides for agricultural cooperation and faster customs clearances, while keeping dairy and other sensitive products excluded.
India-New Zealand FTA Takes Effect, Targets ₹35,000 Cr Trade By 2030
The trade pact promises duty-free access for Indian exporters, faster customs clearances and a push to attract investment, while protecting sensitive domestic sectors
FreePik
Summary
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The India-New Zealand Free Trade Agreement (FTA) came into effect on Tuesday, October 20, giving Indian exporters duty-free access to the New Zealand market and opening opportunities across several sectors.
The two countries aim to double bilateral trade in goods and services to NZ$7 billion, or around ₹35,000 crore, by 2030. The agreement is expected to expand trade, attract investment and strengthen economic ties.
Commerce and Industry Minister Piyush Goyal described the agreement as an important milestone in the bilateral partnership. He said New Zealand's commitment to facilitate $20 billion in investments into India over 15 years could support manufacturing, infrastructure, services and innovation.
Textiles, Pharma To Benefit
Labour-intensive sectors such as textiles, apparel, leather and footwear are expected to benefit from the removal of tariffs of up to 10%. Engineering goods, pharmaceuticals, machinery, chemicals and agricultural products are also expected to gain from improved market access, according to the Ministry of Commerce and Industry.
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The agreement is expected to create opportunities for micro, small and medium enterprises (MSMEs), women entrepreneurs, farmers and artisans. Indian exporters will be able to sell eligible goods in New Zealand without import duties.
New Zealand will also gain improved access to the Indian market for selected products. However, India has excluded sensitive items, including dairy products, onions, sugar, chickpeas, peas and corn, from the agreement.
Agriculture, Faster Clearances
The two countries will launch an agricultural productivity partnership drawing on New Zealand's expertise in precision agriculture and related technologies. Cooperation will focus on improving productivity, technology adoption and supply chains, including for apples, kiwifruit and honey.
New Zealand's apples, kiwifruit and Manuka honey will receive calibrated access to India through tariff-rate quotas and other safeguards intended to protect domestic farmers. The agreement also includes initiatives to strengthen agricultural supply chains and support farmers' incomes.
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The pact provides for customs clearance within 48 hours for cargo and 24 hours for express and perishable consignments. Digital certification and self-certification of rules of origin for eligible exporters are intended to reduce paperwork and compliance costs.
Signed on April 27 and ratified in September, the agreement seeks to diversify India's export markets and deepen economic cooperation. Both countries will now look to translate the new market access into higher trade and investment as they work towards their 2030 target.