INDIA–NEW ZEALAND FREE TRADE AGREEMENT

New: India & New Zealand signed a Free Trade Agreement (FTA)–> To be implemented after NZ Parliament ratification (expected this year)

Highlights

• Strengthens economic + strategic partnership
• Covers trade in goods, services, investment & mobility
• Focus on supply chains + market access

Deal Dynamics

• India gainsàDuty concessions on: Dairy products, Meat products, Fruits (kiwi, apple etc.)= Better access to NZ markets
• New Zealand gainsà Tariff reduction on: Textiles & garments, Pharmaceuticals, Engineering goods, Gems & jewellery

Tariff Changes

• India will reduce tariffs on: → Petroleum products, Edible oils, Selected electronics
• NZ will reduce tariffs on: Wine, Processed food, Industrial goods

Significance

• Boosts India’s Indo-Pacific trade footprint
• Helps in export diversification
• Deepens ties with developed economies
• May improve job creation & investments

Challenges

• Dairy sector concerns (competition from NZ)
• Need for balanced trade benefits