Daijiworld Media Network - New Delhi
New Delhi, Apr 26: India and New Zealand are set to formally sign a long-awaited free trade agreement on Monday, marking a major milestone in bilateral economic relations after the conclusion of negotiations over four months ago.
The signing ceremony will take place at Bharat Mandapam in the presence of India’s Commerce and Industry Minister Piyush Goyal and New Zealand Trade Minister Todd McClay.
The agreement aims to significantly expand trade and investment flows between the two nations, with a target of doubling bilateral trade to around $5 billion over the next five years. It also envisions strengthening economic cooperation amid ongoing global trade uncertainties.
A key component of the deal is an estimated $20 billion investment commitment from New Zealand into India over the next 15 years, covering sectors such as manufacturing, infrastructure, services, innovation, and employment generation.
Under the pact, India will gain improved market access, while New Zealand will see tariff reductions or elimination on nearly 95% of its exports to India. These include goods such as wool, coal, wine, seafood, fruits, and dairy-linked products.
However, India has excluded sensitive sectors like dairy, sugar, onions, spices, edible oils, and rubber to protect domestic farmers and local industries.
New Zealand will benefit from quota-based concessions on key exports like apples and kiwifruit, along with reduced duties on products such as Manuka honey, infant formula, and seafood. It will also receive duty-free access for items including sheep meat, wool, and forestry products.
A notable feature of the agreement is improved mobility for skilled professionals. New Zealand has agreed to allow up to 5,000 Indian professionals annually under a temporary work visa scheme, with stays of up to three years. This covers sectors such as IT, engineering, healthcare, education, construction, and traditional professions like yoga instructors, chefs, and music teachers.
The agreement also includes cooperation in agriculture through an Agri-Technology Action Plan aimed at improving productivity, supply chains, and food safety. It will support Indian farmers with better planting material, training, and technical assistance.
Additionally, New Zealand has committed to supporting the protection of Indian Geographical Indications, including wines and spirits, by updating its legal framework.
The deal further addresses non-tariff barriers through improved regulatory coordination, streamlined customs processes, and enhanced sanitary and phytosanitary standards, making trade between the two countries smoother and more predictable.