New Delhi, Dec 22 (NationPress) Commerce and Industry Minister Piyush Goyal announced on Monday that the newly established free trade agreement (FTA) between India and New Zealand will guarantee zero duties on 100 percent of India’s exports. This initiative is set to benefit farmers, MSMEs, laborers, artisans, women-led businesses, and the youth, while opening up significant prospects for labor-intensive sectors including textiles, apparel, leather, and footwear.

Industries such as engineering, manufacturing, automobiles, electronics, machinery, plastics, pharmaceuticals, and chemicals will also reap benefits.

According to Goyal, this agreement offers a substantial boost to investments, with New Zealand pledging to facilitate $20 billion in foreign direct investment (FDI) into India over 15 years, primarily focusing on manufacturing, infrastructure, services, innovation, and job creation.

“Under the leadership of Prime Minister Narendra Modi and New Zealand PM Christopher Luxon, along with the collaborative efforts of my colleague Minister Todd McClay, we have successfully finalized a landmark Free Trade Agreement in just nine months. This is a significant achievement in our bilateral relationship,” Goyal stated in a post on X.

The minister noted that the FTA will empower farmers by creating new avenues for Indian agricultural products in the New Zealand market, including fruits, vegetables, coffee, spices, cereals, and processed foods.

Through the Agricultural Productivity Partnership, Centres of Excellence, and access to advanced agri-technologies from New Zealand, farmers will enjoy improved productivity, quality, and income. Special initiatives for horticultural products like honey, kiwifruit, and apples will further enhance the sector and promote sustainable growth.

To address domestic concerns, India has taken measures to protect agriculture and related products, such as dairy, sugar, coffee, spices, edible oils, precious metals (gold and silver), precious-metal scrap, copper cathodes, and rubber products, ensuring the safeguarding of farmers, MSMEs, and local industries, Goyal explained.

The FTA also presents new opportunities for India’s service sector, which encompasses IT and ITeS, finance, education, tourism, construction, and more. New Zealand’s inaugural annexes on health, traditional medicine, student mobility, and post-study work provide unprecedented opportunities for Indian professionals and students. Enhanced mobility provisions, including working holiday visas, post-study work pathways, and a quota of 5,000 temporary employment visas for skilled Indian professionals, will allow Indian talent to access superior global prospects, Goyal added.

“This mutually advantageous Agreement will further fortify the economic partnership between India and New Zealand and propel India towards the vision of Viksit Bharat 2047,” Goyal remarked.

The agreement also features the most favorable market access and services offer from New Zealand to India, encompassing 118 service sectors, including computer-related services, professional services, audio-visual services, telecommunication services, construction services, and tourism and travel-related services. A Most-Favored Nation Commitment is included for about 139 sub-sectors, as per the Commerce Ministry's statement.

The FTA establishes skilled employment pathways through a new Temporary Employment Entry Visa pathway for Indian professionals, featuring a quota of 5,000 visas at any time and a maximum stay of three years. This pathway includes Indian professions like Ayush practitioners, yoga instructors, Indian chefs, and music teachers, along with high-demand fields such as IT, engineering, healthcare, education, and construction, thereby enhancing workforce mobility and services trade.

In addition to tariff liberalization, the FTA addresses non-tariff barriers through improved regulatory cooperation, transparency, and streamlined customs, as well as Sanitary and Phyto-sanitary (SPS) measures and Technical Barriers to Trade disciplines. Comprehensive facilitation systems and expedited processes for imports that serve as inputs for our manufactured exports ensure that tariff concessions lead to effective and substantial market access, the statement noted.

Commenting on the FTA, New Zealand Prime Minister Luxon stated, “We’ve concluded a Free Trade Agreement with India. This will open doors for New Zealand farmers, growers, and businesses - boosting exports, creating jobs, and increasing incomes to help all Kiwis get ahead.”