News: India and New Zealand concluded discussions on a free trade agreement to provide tariff-free access, attract investments, and expand bilateral trade.
About India–New Zealand FTA
- The India–New Zealand Free Trade Agreement is India’s second bilateral trade agreement in the Oceania region after the India–Australia FTA.
- Key Takeaways of India–New Zealand FTA
- Tariff Elimination: The FTA eliminates duty on 100% of Indian exports.
- Investment Commitment: The agreement includes a USD 20 billion investment commitment over 15 years, strengthening long-term economic and strategic cooperation.
- Trade Target: The FTA aims to double bilateral trade to USD 5 billion within five years.
- Trade Growth: Merchandise trade grew from USD 873 million in 2023–24 to USD 1.3 billion in 2024–25, registering a 49% increase.
- Export Performance: Indian merchandise exports reached USD 711 million in 2024–25, while services exports grew to USD 634 million, led by travel, IT, and business services.
- Sectoral Gains: Zero-duty access benefits labour-intensive sectors such as textiles, apparel, leather, footwear, gems and jewellery, engineering goods, and processed foods.
- Tariff Structure: India offered market access in 70.03% of tariff lines, with 30% immediate elimination and phased reduction for 35.60% over 3 to 10 years.
- Sensitive Protection: Key products such as dairy, select agricultural goods, sugar, fats and oils, arms, and certain metals remain in the exclusion list.
- Services Access: New Zealand made its best-ever services offer, including an annex on Health and Traditional Medicine Services.
- Mobility Pathways: The FTA opens new routes through 5,000 skilled professional visas and 1,000 working holiday visas, benefiting Indian students and workers.
