India and New Zealand Sign Free Trade Pact to Boost Exports and Investments

India and New Zealand are launching a new Free Trade Agreement on October 20, aiming to double their bilateral goods trade by 2030. Even though current trade between the two nations stands at $1.1 billion, which is less than 1 percent of India's total goods trade, the pact offers vital support to micro, small, and medium enterprises that make up nearly half of the businesses involved.

Export Gains and Exclusions

India has secured duty-free access for 100 percent of its exports under this historic deal. Key export items benefiting from the agreement include textiles, pearls, semi-precious stones, pharmaceuticals, nuclear reactor parts, vehicle parts, mineral fuels, electrical machinery, and iron and steel. At the same time, India successfully protected its sensitive dairy sector by keeping it entirely out of the deal. In total, nearly 30 percent of Indian import lines remain outside tariff concessions.

Visas and Investments

Beyond goods trade, the agreement brings new worker and student visa concessions from New Zealand at a time when many Western nations are restricting foreign inflows. New Zealand has also committed to bringing $20 billion of investments into India over a 15-year period.