- India-New Zealand FTA grants 100% duty-free access for Indian exports to New Zealand
- Labour-intensive Indian sectors like garments and handicrafts gain market access benefits
- New Zealand supports India's agricultural plans with research and capacity building initiatives
Union Minister of Commerce Piyush Goyal on Monday said that India–New Zealand FTA (Free Trade Agreement) would create a "strong push for exports and jobs".
In a blog post hours before India and New Zealand inked a free trade agreement, Goyal said that it was a "win-win" arrangement for both parties with India's exporters gaining 100% access to New Zealand's markets while the latter country receives access to 95% of India's markets.
He further stated that labour intensive segments of India's export market like garments, carpets, yarn, fabrics, footwear, bags, belts, automobile components, machinery, tools, gems and jewellery, and handicrafts are expected to receive notable benefits from the FTA's "market access and price competitiveness".
"This will boost exports and trigger large-scale employment generation across manufacturing clusters, artisan communities, and small enterprises," Goyal stated.
New Zealand is also set to support agricultural productivity plans for kiwi, apples and honey.
"These initiatives include improved planting material, research collaboration, capacity building for growers, orchard management practices, post-harvest improvements, food safety systems, and the establishment of Centres of Excellence," the Commerce Minister stated.
India has excluded dairy product and vegetables like onions, chana, peas, corn, almonds, sugar, and certain oils and fats from tariff concessions for New Zealand.
"This ensures that domestic farmers remain insulated from disruptive import competition," Goyal added.
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New Zealand has also made a $20 billion investment commitment to India. This is meant to support India's manufacturing, infrastructure, renewable energy, digital services, innovation ecosystems, and employment generation.
He also stated that a "rebalancing clause" has been created to ensure accountability, facilitaitng India to take corrective measures if investment commitments are missing the mark.
"The agreement also encourages collaboration in research, technology transfer, skill development, and innovation-driven sectors, ensuring that trade is complemented by long-term developmental partnerships," Goyal said.
The two countries have also negotiated a framework for Indian students and professionals to have academic and work-related opportunities in New Zealand. This includes not having a cap on the number of Indian student visas that can apply to the country.
"Students will be allowed to work at least 20 hours per week during studies, while post-study work rights extend up to three years for STEM graduates and up to four years for doctoral scholars," the Commerce Minister stated.
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The FTA provides duty-free access for 100 per cent of India's exports to New Zealand, covering all tariff lines or produce categories.
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