New Delhi, Oct 19 (SocialNews.XYZ) India's Free Trade Agreement (FTA) with New Zealand will come into force on October 20, paving the way for deeper economic engagement, faster regulatory cooperation, and increased investment flows between the two countries, Commerce Secretary Rajesh Agrawal said on Monday.
Speaking on the significance of the agreement, Agrawal said FTAs are not merely about tariff reductions but about creating deep and durable economic partnerships that support trade, investment, and supply chain integration.
"FTAs are about creating deep economic partnership," the Commerce Secretary stated.
He said such agreements also help facilitate faster regulatory approvals and improve the ease of doing business between partner countries.
The Commerce Secretary noted that India is pursuing multiple FTAs as part of its broader strategy to build resilient and durable global supply chains while expanding market access for Indian businesses.
He added that the India-New Zealand FTA is expected to play a key role in strengthening bilateral economic ties, with the government targeting a doubling of trade between the two countries in the coming years.
The agreement is also expected to unlock substantial investment opportunities. According to the Commerce and Industry Ministry, the FTA sets the stage for facilitating up to $20 billion in investments from New Zealand into India across sectors such as agriculture, manufacturing, infrastructure, and startups.
For India's services sector, the pact offers wider access to the New Zealand market across sectors including information technology, professional services, construction, tourism, and audio-visual services.
The agreement also provides mobility opportunities for Indian professionals through dedicated visa quotas and expands avenues for students through post-study work rights.
Indian pharmaceutical and medical device exporters are also expected to benefit from faster market access, as New Zealand will accept inspection approvals from globally recognised regulators, reducing compliance timelines and speeding up entry into the market.
With bilateral merchandise trade currently estimated at around $1.1 billion, officials expect the FTA to provide a strong impetus to two-way trade, investment, and job creation.
At the same time, the government has safeguarded the interests of Indian farmers by excluding sensitive products, including dairy, sugar, edible oils, and most animal meat products, from tariff concessions.
Source: IANS
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