India, New Zealand wind up FTA talks, set to boost trade, Pg1

Key Highlights:

• India and New Zealand concluded Free Trade Agreement (FTA) talks aimed at boosting bilateral trade and investment.
• The FTA is expected to bring $20 billion in investments to India over 15 years.
• Bilateral trade is projected to double to $5 billion in the next five years.
• New Zealand will eliminate or reduce tariffs on 95% of its exports to India.
• India secured 5,000 temporary employment visas annually for Indian professionals in New Zealand.
• The FTA is expected to be signed in the first half of 2026.

Detailed Insights:

• The FTA aims to deepen economic ties, enhance market access, and promote investment flows between India and New Zealand.
• India has protected its agriculture sector by not making concessions on imports of dairy, onions, sugar, spices, edible oils, and rubber.
• The agreement will provide temporary employment visas for Indian professionals in skilled occupations for a stay of up to three years.
• The FTA is expected to benefit labor-intensive sectors in India, such as apparel, leather, textiles, rubber, footwear, and home decor.
• The agreement will encourage exports of automobiles, auto components, machinery, electronic goods, electrical and pharmaceuticals from India.
• The temporary employment visas cover AYUSH practitioners, yoga instructors, Indian chefs, music teachers, IT, engineering, healthcare, education, and construction sectors.
• This FTA will help Indian exporters diversify shipments in the Oceania region, especially after the 50% tariffs imposed by the Trump administration.

Key Concepts Involved:

• Free Trade Agreement (FTA): An agreement between two or more countries to reduce or eliminate trade barriers such as tariffs and quotas.
• Tariffs: Taxes imposed on imported goods or services.
• Bilateral Trade: Trade between two countries.