The Free Trade Agreement (FTA) between India and New Zealand is poised to have significant economic impacts as it takes effect on October 20, according to Commerce and Industry Minister Piyush Goyal. This agreement will immediately enable 100% of Indian exports to enter New Zealand duty-free, potentially boosting trade between the two nations.
Signed in April, the FTA is expected to facilitate a substantial $20 billion investment from New Zealand into India over the next 15 years. However, to safeguard local agricultural interests, India has strategically excluded several sensitive agricultural products, including onions, chickpeas, peas, corn, almonds, and sugar, from the agreement.
Beyond New Zealand, India is actively pursuing trade agreements with other significant partners. Negotiations with Canada, for instance, are entering their fifth round this month, with both countries aiming to expedite progress on a Comprehensive Economic Partnership Agreement. Meanwhile, discussions with the European Union and Chile are also advancing, with hopes of further developments in the EU agreement by year-end.
These efforts are part of India’s broader strategy to strengthen its global trade relationships and enhance economic growth. By securing advantageous trade terms with diverse international partners, India is positioning itself to expand its export markets and attract foreign investment, driving sustained economic development.