India and New Zealand have officially signed a historic free trade agreement (FTA) that significantly reshapes their economic partnership. This landmark deal, finalized in the presence of Commerce Minister Piyush Goyal and his New Zealand counterpart Todd McClay, eliminates tariffs on 100% of India’s exports to New Zealand and reduces or removes tariffs on 95% of the imports from New Zealand.
The FTA, which was completed within a record nine-month period, marks a new chapter in the economic relations between these two nations. One immediate benefit is the duty-free access to 100% of tariff lines for Indian exports. This is a major shift from the existing tariffs that New Zealand imposes on approximately 450 tariff lines, including textiles, apparel, and automobiles. Moreover, the agreement facilitates a $20 billion investment from New Zealand into India over the next 15 years.
This groundbreaking agreement also addresses mobility for professionals and students for the first time. Indian students will have the opportunity to work while studying in New Zealand and can extend their post-study work visas. Additionally, a quota of 5,000 skilled Indian workers can stay for up to three years in various key sectors, such as IT, healthcare, and education. The agreement even includes a working holiday visa program allowing 1,000 young Indians to explore opportunities in New Zealand for a year.
The FTA is poised to boost India’s leather industry and pharmaceutical sectors while ensuring that essential products like dairy remain excluded from the agreement. Overall, this FTA signals a strong commitment from both nations to enhance bilateral trade and investment.”