The India-New Zealand FTA was signed in New Delhi on April 27 by Commerce and Industry Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay. New Zealand’s Parliament passed the legislation on September 16.
Here is what changes with the agreement.
Indian exports get zero-duty access
Indian exporters will benefit from the removal of New Zealand tariffs of up to 10% on several products.
Key sectors include:
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Textiles and apparel
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Leather and footwear
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Gems and jewellery
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Engineering goods
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Processed food
Indian manufacturers will also get tariff-free access to inputs such as wooden logs, coking coal and metal scrap.
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Farmers get protection
India has kept several sensitive agricultural products outside tariff concessions.
These include:
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Dairy
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Animal meat, except sheep
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Sugar
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Edible oils
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Key agricultural commodities
Imports of New Zealand apples, kiwifruit and Manuka honey will be regulated through tariff-rate quotas, minimum import prices and seasonal import windows.
The agreement also includes an Agriculture Productivity Partnership covering areas such as orchard management, post-harvest practices, food safety and sustainable beekeeping.
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$20 billion investment commitment
New Zealand has committed to facilitate $20 billion in investment into India, covering sectors such as agriculture, manufacturing, infrastructure and startups.
India and New Zealand have also set an aspirational target of doubling two-way trade in goods and services to NZ$7 billion, around ₹35,000 crore, by 2030.
More opportunities for Indians
The FTA expands access for Indian services companies and professionals across around 118 sectors, including IT, construction, tourism and professional services.
It also provides:
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5,000 Temporary Employment Entry visas for skilled Indians
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1,000 Working Holiday visas every year for young Indians
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Post-study work rights of up to three years for STEM graduates
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Up to four years for doctoral scholars
Indian pharmaceutical and medical device companies are also expected to benefit from faster market access as New Zealand accepts inspection approvals from regulators including the US FDA, EMA, UK MHRA and Health Canada.