India Secures Zero-Duty Access for All Exports to New Zealand After FTA Finalisation
Under the newly finalized FTA, India has secured immediate zero-duty access for all its exports to New Zealand, positioning Indian textiles, engineering goods, and marine products for expanded global reach. This strategic move helps India diversify its trade routes, ensuring broader market access beyond traditional partners. New Zealand gains preferential access for 70% of its tariff lines, while India protects sensitive agricultural sectors like dairy with safeguards, balancing local industry interests with global trade opportunities.
India has successfully secured zero-duty access for all its exports to New Zealand under a newly finalized Free Trade Agreement (FTA), marking a significant strategic move to diversify its global trade. This agreement, finalized following discussions between Prime Ministers Narendra Modi and Christopher Luxon, is set to immediately boost Indian industries such as textiles, engineering goods, and marine products, helping them expand their reach beyond traditional markets. The deal is expected to notably increase bilateral trade, which currently stands at nearly US$2.5 billion, with projections suggesting it could double within five years.
Under the agreement, New Zealand will gain preferential market access to approximately 70% of India's tariff lines, covering nearly 95% of its current exports. Products like forestry products, sheep meat, wool, and coal will largely become duty-free or face reduced tariffs. However, India has strategically included safeguards for sensitive agricultural sectors, such as dairy products, through measures like tariff-rate quotas and seasonal controls, ensuring that domestic farmers are protected against sudden import surges.
The FTA also opens new avenues for professional and student exchange. India will benefit from an annual pathway for up to 1,700 skilled workers to address New Zealand's labor shortages in sectors like IT, engineering, and healthcare. Additionally, the working holiday scheme for Indian nationals will be significantly expanded to 1,000 places. New Zealand has also committed to investing nearly ₹1.7 lakh crore (US$20 billion) in India over the next fifteen years, signaling a long-term commitment to enhancing industrial collaboration and economic ties.
This landmark agreement not only provides Indian businesses with a vital new market but also strengthens India's position in the global trade landscape by securing diversified access. While balancing the interests of local industries, particularly in agriculture, the FTA is poised to drive export growth, attract significant investment, and foster deeper economic integration with New Zealand, ensuring a resilient and expanded commercial footprint for India.
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