India and New Zealand have signed a Free Trade Agreement (FTA) aimed at expanding bilateral trade and investment, according to an announcement from New Delhi.
The agreement covers 20 chapters, including trade in goods and services, customs procedures, trade facilitation, sanitary and quality standards, and dispute settlement mechanisms.
For India, the deal is expected to open wider access to the New Zealand market with 0% customs duty on most Indian products such as textiles, plastics, leather and engineering goods. The pact also indicates an investment commitment of nearly ₹1.88 lakh crore over 15 years, and highlights opportunities in IT, financial services, education and tourism.
The agreement includes a quota of 5,000 visas for skilled Indians with employment options for up to three years, and provides customs duty exemption for Indian liquor.
For New Zealand, the pact offers market access in India for 70% of its goods, with immediate duty removal for items such as sheep meat, wood products and coal. Limited concessions are provided for farm products like apples, kiwifruit and honey, while full duty elimination for certain seafood is planned over seven years.
India has also kept safeguard provisions to protect farmers and micro, small and medium enterprises, withholding tariff concessions in sectors including dairy, vegetables, sugar, copper and aluminium.
