Choutuppal to New Zealand: Telangana’s first consignment flagged off under FTA

Telangana flagged off its first consignment, a truck load of groceries processed and packed in Dandu Malkapur of Yadadri-Bhuvanagiri district, to New Zealand under the Free Trade Agreement on Monday. The agreement came into force on Tuesday (October 20).

Additional Director General of Foreign Trade (Telangana) Rendla Sampath Kumar, along with officials of the Agricultural and Processed Food Products Export Development Authority (APEDA) and the State Industries and Commerce Department, flagged off the truck at Frumar Agri Foods Pvt. Ltd., TIF MSME Green Industrial Park, on NH-65 (Hyderabad-Vijayawada) in Choutuppal.

Mr. Sampath Kumar said that the agreement would enable 100% of tariff lines on Indian exports to New Zealand to become duty-free. It would benefit sectors such as textiles, clothing, leather, footwear, pharmaceuticals, marine products, agriculture, chemicals, plastics and electrical goods.

“Indians, who account for about 5% of New Zealand’s population and act as our economic and cultural bridge, will greatly benefit from exports under the FTA,” he said while speaking to the media.

India and New Zealand announced the start of negotiations in March last year. The agreement was signed in April this year and ratified in September following the passage of parliamentary legislation in New Zealand. While New Zealand grants India 100% duty-free market access, it receives tariff concessions on 70.03% of its tariff lines. The agreement provides for foreign direct investment of $20 billion into India over 15 years.

For Ramesh Movva, managing director of Frumar Agri Foods Pvt. Ltd., the 100% duty exemption significantly benefits businesses like his. Operating under the brand name Swetha Telugu Foods, the unit exports rice, pickles, blended spices, millets, rawas, frozen foods and a range of traditional snacks.

“Presently, our New Zealand market targets about 2 lakh Indians and others. This agreement will help us expand volumes and reach a wider market affordably. Locally too, the number of employees would increase from the present 500 as production volumes rise,” he said.

In Delhi, Minister for Commerce and Industry Piyush Goyal flagged off a JCB-18Z mini-excavator manufactured in Maharashtra as the country’s first consignment to New Zealand under the agreement.

“The success of the agreement will be measured by the opportunities it creates and the difference it makes to the lives of people in New Zealand and India. This will create opportunities for Indian MSMEs, artisans, farmers and women entrepreneurs,” he stated.