India's Selective Import Duty Strategy Safeguards Local Sectors in NZ Trade Pact

India has protected its farmers and MSMEs by not offering import duty concessions to New Zealand on various sectors under a new trade agreement. Sensitive sectors like dairy, animal products, and aluminium remain protected. The pact includes certain agri goods for import with conditional benefits.

In a move to protect domestic interests, India has strategically excluded certain sensitive sectors from import duty concessions in its impending trade agreement with New Zealand. These sectors include dairy, animal products, sugar, copper, and aluminium, a step seen as crucial for preserving the interests of Indian farmers and MSMEs.

The agreement, announced Monday, anticipates being signed within three months and operational next year. While it grants greater market access to New Zealand in agricultural products like Manuka honey, apples, kiwi fruit, and albumins, India has set quotas and minimum import prices (MIP) to maintain a controlled import structure.

Duty concessions under this pact are conditionally limited, ensuring a gradual tariff reduction over several years, aiming to balance import benefits while safeguarding local industry interests. This strategic approach highlights India's commitment to a sustainable economic relationship while defending its domestic market from potential disruptions.

(With inputs from agencies.)