India–New Zealand FTA to be signed April 27, aims to double trade and unlock investments

New Delhi: India and New Zealand are set to sign a long-awaited free trade agreement (FTA) on Monday, marking a significant step toward strengthening economic ties and expanding bilateral cooperation across sectors.

The agreement will be formalised at Bharat Mandapam in the presence of Commerce and Industry Minister Piyush Goyal and his New Zealand counterpart Todd McClay.

Trade and Investment Boost

The pact aims to double bilateral trade to $5 billion within five years and is expected to open fresh opportunities for Indian exporters amid global trade uncertainties. In addition, it is projected to facilitate around $20 billion in investments from New Zealand into India over the next 15 years, spanning sectors like manufacturing, infrastructure, services, innovation, and job creation.

Market Access and Tariff Changes

Under the agreement:

• Indian businesses will gain duty-free access to New Zealand markets
• New Zealand will receive tariff elimination or reduction on about 95% of its exports to India

Key imports from New Zealand include:

• Wool, coal, wood
• Wine, seafood
• Fruits like cherries, avocados, and blueberries

However, India has excluded sensitive sectors such as dairy, sugar, onions, spices, edible oils, and rubber to protect domestic producers.

New Zealand will also benefit from quota-based tariff concessions on items like kiwifruit and apples, while enjoying duty-free access for sheep meat, wool, and forestry products. Reduced duties will apply to products such as Manuka honey, infant formula, and select seafood.

Mobility for Professionals

A major highlight of the agreement is improved workforce mobility. New Zealand has agreed to offer temporary work visas for up to 5,000 Indian professionals annually, allowing stays of up to three years.

This will cover sectors such as:

• IT, engineering, healthcare, education, construction
• Traditional roles like yoga instructors, AYUSH practitioners, chefs, and music teachers

Agriculture and Technology Cooperation

The FTA includes an Agri-Technology Action Plan focused on crops like kiwifruit, apples, and honey. This initiative will support Indian farmers with:

• Better planting materials
• Technical training
• Improved supply chain and food safety practices

Geographical Indications & Trade Facilitation

New Zealand has also committed to supporting India’s Geographical Indications (GI) by amending its laws to enable registration of Indian wines and spirits.

Additionally, the pact addresses non-tariff barriers through:

• Streamlined customs procedures
• Stronger regulatory cooperation
• Improved sanitary and phytosanitary standards

Overall, the agreement is expected to deepen economic engagement, enhance market access, and create new growth avenues for both countries.

With inputs from IANS