New Delhi: India and New Zealand on Monday signed a historic Free Trade Agreement (FTA), marking a major step forward in bilateral economic ties. The agreement is expected to strengthen trade relations between the two nations and open the door for nearly 20 billion dollars in investment in India over the next fifteen years.
The agreement was signed in the presence of Union Commerce and Industry Minister Piyush Goyal and New Zealand Trade Minister Todd McClay. According to officials, the pact will provide Indian exporters wider access to the New Zealand market with duty-free benefits on several products.
India’s textile, apparel, leather, gems and jewellery, engineering goods, pharmaceutical and processed food sectors are expected to gain significantly from the agreement. It is also likely to boost micro, small and medium enterprises and generate new employment opportunities.
The government stated that sensitive sectors, including dairy products, have been kept outside the agreement to protect the interests of farmers and domestic industries. This is expected to safeguard India’s agriculture and dairy sectors from adverse impact.
Experts believe the agreement is an important milestone in India’s global trade strategy. It is expected to enhance India’s economic presence in the Oceania region and substantially increase commercial engagement between the two countries.