India and New Zealand Seal Landmark Free Trade Deal

India and New Zealand are set to sign a free trade agreement on April 27, anticipated to bring USD 20 billion in investment over 15 years. This pact provides tariff-free market access for Indian exports while New Zealand gets reduced tariffs on 95% of their exports to India.

India and New Zealand are poised to sign a groundbreaking free trade agreement on April 27, an official disclosed on Thursday. The landmark deal promises to open New Zealand's market to Indian goods with tariff-free access and is expected to attract USD 20 billion in investment over the next 15 years.

The conclusion of negotiations for this trade deal was initially announced on December 22 of last year. Aimed at doubling bilateral trade to USD 5 billion within five years, the agreement ensures zero-duty market access for 100% of Indian exports. New Zealand, on the other hand, will benefit from reduced tariffs on 95% of its exports to India, covering products like wool, coal, wood, and wine.

Key exclusions in the agreement include dairy products, onions, sugar, spices, and various edible oils and rubbers, to protect Indian farmers and industries. As part of the services exchange, New Zealand will provide a temp employment entry visa pathway for 5,000 skilled Indian professionals annually. Bilateral trade figures estimate total merchandise exchanges at USD 1.3 billion for 2024-25, with services accounting for USD 1.24 billion driven by travel and IT sectors.

(With inputs from agencies.)