India–New Zealand FTA: What each side stands to gain

India and New Zealand on Monday concluded negotiations for a free trade agreement (FTA) within nine months.The agreement is expected to benefit Indian farmers, MSMEs, artisans, youth and women-led enterprises.Under the pact, 100% of India’s exports will enjoy zero-duty access to the New Zealand market, with tariffs eliminated across 8,284 lines, strengthening India’s trade competitiveness and export potential.ET takes a look at the gains for both sides:

7th FTA since 2021

India’s gains:New Zealand to invest $20 billion over 15 yearsManufacturing, services, job creation focusBoost for farmersAccess to advanced agri-techHigher productivity, qualityAgriculture & food processing: Zero-duty access across 1,379 tariff linesHigher exportsImproved farm incomesTargeted action plan for kiwifruit, apples & honeyCooperation on food safety standards & supply chainsKey beneficiary sectorsZero-duty access for India’s labour-intensive sectors, including:TextilesLeatherGems & jewelleryEngineering goodsProcessed foodsGlobal mobility expansionNew annexes on mobility provisionsBetter job opportunities for Indian studentsPathways for working holiday visas, post-study work visasSmooth temporary employment visas for skilled Indian professionals

Pharma and Medical devicesFast-track approvalsRecognition of US, EU, UK & Canadian inspectionsZero-duty access, strengthening India’s role as a supplier of affordable medicines

AYUSH, WellnessCooperation in AYUSH systemsSupport for research & capacity building

Services sectorMFN status boosts IT, fintechGrowth in IT-ITeS, finance, educationDeeper value-chain integration

Trade winds

Side lettersWine, GI working groupsComparable regulators under Annex on pharma, medical Consultations related to dairy sector in review of FTAMRA in organics