New Delhi: India and New Zealand are set to sign a long-awaited free trade agreement on Monday, more than four months after concluding negotiations, with the deal expected to significantly boost bilateral trade, investments and market access across sectors.
The agreement will be signed at Bharat Mandapam in the presence of Piyush Goyal and Todd McClay, marking a major step in strengthening economic ties between the two countries.
The pact is aimed at doubling bilateral trade to $5 billion over the next five years and is expected to open new avenues for Indian exporters, particularly at a time when global uncertainties, including tensions in West Asia, are impacting trade flows.
It will also facilitate an estimated $20 billion investment from New Zealand into India over the next 15 years across sectors such as manufacturing, infrastructure, services, innovation and job creation.
Under the agreement, Indian companies will gain duty-free access to New Zealand’s markets, while New Zealand will see tariffs eliminated or reduced on about 95 per cent of its exports to India.
These include products such as wool, coal, wood, wine, seafood, cherries, avocados and blueberries.
However, India has kept sensitive sectors like dairy, onions, sugar, spices, edible oils and rubber outside the scope of tariff concessions to safeguard domestic farmers and industries.
New Zealand will also receive quota-based tariff reductions for key exports such as kiwifruit and apples.
At the same time, it will enjoy duty-free access to items including sheep meat, wool and forestry products, while benefiting from reduced duties on products like Manuka honey, infant formula and certain seafood items.
A key feature of the pact is enhanced mobility for professionals. New Zealand has agreed to provide a temporary employment visa pathway for up to 5,000 Indian professionals annually, allowing stays of up to three years.
This will cover a wide range of occupations, including IT, engineering, healthcare, education and construction, as well as traditional professions such as yoga instructors, AYUSH practitioners, chefs and music teachers.
The agreement also seeks to strengthen cooperation in agriculture through a dedicated Agri-Technology Action Plan focusing on products like kiwifruit, apples and honey.
The initiative will support Indian farmers through improved planting materials, capacity building and technical assistance in areas such as orchard management, supply chains and food safety.
In addition, New Zealand has committed to supporting India’s Geographical Indications by amending its laws to facilitate the registration of Indian wines and spirits.
The pact also includes provisions to address non-tariff barriers through better regulatory cooperation, streamlined customs procedures and improved sanitary and phytosanitary measures.
(IANS)
