Starting October 20, India will see all its exports to New Zealand enjoy duty-free status, a significant boost for Indian traders and manufacturers. This development comes as part of a Free Trade Agreement (FTA) between the two nations, which was initially signed in April. Commerce and Industry Minister Piyush Goyal disclosed this timeline, emphasizing the immediate benefits for India’s export sector.
The agreement is set to enhance economic relations by also paving the way for substantial investment flows. New Zealand is committed to facilitating up to $20 billion in investments into India over the next 15 years, promising a long-term economic partnership that extends beyond just trade in goods.
While the FTA opens up vast opportunities, India has strategically chosen to exclude certain sensitive agricultural products to safeguard its domestic market. Products like onions, chickpeas, peas, corn, almonds, and sugar remain protected under the terms of the agreement, ensuring that local farmers and producers are not adversely affected by the influx of foreign competition.
In addition to the New Zealand deal, India is actively advancing its trade agenda with other global partners. Negotiations with the European Union, Canada, and Chile are underway, aiming to broaden India’s trade horizons. The discussions with Canada are entering their fifth round this month, as both countries aim for a Comprehensive Economic Partnership Agreement. Meanwhile, talks with Chile are progressing, and India is hopeful for significant advancements with the European Union by the year’s end.