India, New Zealand sign ‘historic’ free trade deal, Pg1

Key Highlights:

• India and New Zealand signed a Free Trade Agreement (FTA) on Monday, hailed as a historic step for trade and investment.
• New Zealand will eliminate tariffs on all goods from India, while India will remove or reduce tariffs on 95% of imports from New Zealand.
• The FTA was signed by Commerce Minister Piyush Goyal and New Zealand’s Trade Minister Todd McClay in New Delhi.
• India's exports to New Zealand grew by 32.1% in 2024-25, reaching $711.1 million.
• The FTA includes a provision for New Zealand to facilitate $20 billion in investments into India over the next 15 years.

Detailed Insights:

• The agreement still requires ratification by New Zealand's Parliament and is expected to come into force within this year.
• Beyond tariff concessions, the FTA encompasses market access, agricultural productivity, investment, mobility for professionals and students, benefiting various sectors.
• The agreement aims to create jobs and boost economic engagement, fostering new partnerships and enhancing established business relationships.
• The Make in India initiative aligns with New Zealand's investment commitment, promoting a vibrant partnership beyond trade.

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.
• Make in India: An initiative by the Indian government to encourage domestic manufacturing and attract foreign investment.

New Zealand