India-New Zealand Trade Pact Boosts Export Opportunities

The India-New Zealand free trade agreement allows New Zealand companies to import dairy materials to India, process them, and re-export products without duty concessions on imports. The arrangement aims to boost India's exports, while safeguarding domestic interests by keeping dairy imports under tight control.

The recently concluded India-New Zealand free trade agreement includes an investment provision enabling New Zealand firms to import and process dairy materials in India. These processed products will then be re-exported, Commerce and Industry Minister Piyush Goyal announced on Monday.

Goyal emphasized that the arrangement facilitates increased exports to New Zealand and other global markets through a fast-track mechanism intended to expedite re-export investments. These investments are earmarked for products manufactured exclusively for international markets, protecting domestic interests, according to an official.

The agreement, which excludes any duty concessions on dairy imports, will be implemented next year. Goyal reassured that India's policy prohibits opening the dairy sector to bulk imports, a sensitive issue for the nation. New Zealand's dairy exports to India are currently minimal, with total trade in FY2025 at just USD 1.07 million.

(With inputs from agencies.)