India–New Zealand FTA To Improve Market Access For Exporters: FIEO

New Delhi, Dec 22 (KNN) India and New Zealand have concluded a Free Trade Agreement (FTA) in a span of nine months, marking a significant step in strengthening bilateral economic relations.

Welcoming the development, S C Ralhan, President, Federation of Indian Export Organisations (FIEO), said the swift conclusion of the agreement reflected strong political commitment and a shared economic outlook. He noted that the FTA could enhance India’s integration with global value chains and improve market access for Indian exporters.

Zero-Duty Market Access for Indian Exports

Once implemented, the FTA will provide zero-duty access for 100 per cent of India’s exports to New Zealand, with tariff elimination across all tariff lines. 

According to FIEO, the agreement is expected to benefit labour-intensive sectors such as textiles, apparel, leather and footwear, as well as engineering, manufacturing, automobiles, electronics, machinery, plastics, pharmaceuticals and chemicals. 

The duty-free access is also expected to support MSMEs, workers, artisans, women-led enterprises and youth employment.

Investment Commitments

The agreement includes provisions to strengthen bilateral investment flows, with New Zealand committing to facilitate investments of up to USD 20 billion in India over the next 15 years. These investments are expected to focus on manufacturing, infrastructure, services, innovation and job creation. 

FIEO said the commitment signals confidence in India’s growth prospects and could support export-oriented manufacturing.

Opportunities for Agriculture and Farmers

The FTA opens new opportunities for Indian agricultural exports, including fruits, vegetables, coffee, spices, cereals and processed food products. 

At the same time, India has retained safeguards for sensitive sectors, including dairy, sugar, coffee, spices, edible oils, precious metals, copper cathodes and rubber-based products, to protect domestic farmers, MSMEs and allied industries.

The FIEO President added that the FTA not only expands market access but also emphasises technology transfer and productivity enhancement, enabling Indian farmers to move up the value chain and secure higher incomes.

Services, Mobility and Skill Development

The agreement expands market access for India’s services sector across IT and IT-enabled services, finance, education, tourism and construction. 

Ralhan noted that the progressive provisions covering services, mobility, student opportunities, and traditional medicine are forward-looking and poised to offer significant benefits to India’s skilled professionals and youth.

Long-Term Economic Partnership

FIEO regards the India–New Zealand FTA as a mutually beneficial and forward-looking agreement that will deepen economic cooperation, strengthen people-to-people connections, and advance India’s long-term vision of Viksit Bharat 2047.

(KNN Bureau)