India-New Zealand FTA to boost bilateral trade, create new growth opportunities: Industry

New Delhi, Dec 22 (PTI) Welcoming the conclusion of talks for a free trade agreement between India and New Zealand, the industry on Monday said the proposed pact is expected to boost bilateral trade and investment flows and create new growth avenues for businesses in both nations.

The agreement will give duty-free access to a range of domestic goods, particularly from labour-intensive sectors, and includes an FDI commitment of USD 20 billion over 15 years. It is expected to help double bilateral trade in goods and services to USD 5 billion in five years.

"FICCI welcomes the conclusion of the India-New Zealand Free Trade Agreement, a significant step towards deepening economic engagement with the Indo-Pacific region. The agreement is expected to enhance bilateral trade, investment flows, and further collaboration, creating new growth opportunities for businesses in both countries," FICCI President Anant Goenka said.

India-New Zealand Free Trade Agreement represents a next-generation deal combining trade liberalisation with talent mobility, investment, and productivity-led cooperation, Ranjeet Mehta, CEO & Secretary General, PHDCCI, said.

“The Agreement provides policy certainty and lowers input costs for manufacturing, creating a vision for long-term economic resilience," Mehta said.

New Zealand will get duty-free access to goods such as sheep meat, wool, coal and over 95 per cent of forestry and wood articles. Under the pact, Wellington will get duty concessions on a number of other items such as kiwi fruit, wine, some seafood, cherries, avocados, persimmons, bulk infant formula, Manuka honey and milk albumins.

To protect the interests of domestic farmers and MSMEs, India will not give any duty concessions in the politically sensitive dairy sector, like milk, cream, whey, yoghurt, and cheese.

As regards the services sector, New Zealand will give a temporary employment entry visa pathway for Indian professionals in skilled occupations with a quota of 5,000 visas annually and a stay of up to three years.

The agreement is likely to be signed and implemented in about 7-8 months. The pact would help Indian exporters, reeling under the impact of 50 per cent tariffs imposed by the Trump administration on Indian goods, to diversify shipments in the Oceania region. India has already implemented a trade pact with Australia.

Prime Minister Narendra Modi and his New Zealand counterpart Christopher Luxon on Monday announced the firming up of the pact.

The two prime ministers held a phone conversation, following which the announcement on the FTA was made. PTI RSN MR