Commerce Secretary says India-New Zealand FTA is about "deep economic partnership," not just market access

The India-New Zealand Free Trade Agreement (FTA) will come into effect tomorrow, with Commerce Secretary Rajesh Agrawal saying the pact aims to build a long-term economic partnership beyond tariff cuts and market access.

The India-New Zealand Free Trade Agreement (FTA) will come into effect tomorrow, with Commerce Secretary Rajesh Agrawal saying the pact aims to build a long-term economic partnership beyond tariff cuts and market access. Speaking on the occasion, Agrawal said the agreement seeks to combine the strengths of both countries and deepen economic cooperation.

"These ties are not only about market access and having more exports to each other," he said, adding that the focus is on building a strong and lasting economic partnership. As part of the agreement, India and New Zealand will launch an agriculture productivity partnership. The initiative will use New Zealand's expertise in precision agriculture and related technologies to improve India's agricultural ecosystem across several areas.

Agrawal said New Zealand companies have made limited investments in India so far, but the FTA is expected to encourage investment in sectors where they can also bring technical expertise and industry experience. He said the benefits of the agreement should be assessed across the broader economic spectrum. The Commerce Secretary also highlighted India's efforts to conclude multiple FTAs, saying agreements with countries across regions can help build stronger and more resilient supply chains.

He noted that 60-70 per cent of New Zealand's trade is concentrated in the Asia-Pacific region, where several major economies have stronger trade ties with the country than India. India's trade with New Zealand remains limited, Agrawal said, adding that this presents an opportunity to significantly expand bilateral trade in the coming years.

The India–New Zealand Free Trade Agreement (FTA) was signed on April 27 and ratified on September 21. Under the India-New Zealand Strategic Partnership Roadmap, both countries have set a target of doubling bilateral trade in goods and services to NZD 7 billion, equivalent to around Rs 35,000 crore, by 2030. As per the Ministry of Commerce data, bilateral trade in goods and services between both countries currently stands at USD 2.4 billion. India's services exports to New Zealand increased 13 per cent from USD 561 million to USD 634 million, while Indian goods exports rose 16 per cent over the past four years to USD 566.5 million in 2025-26. (ANI)