New Delhi, April 29: New Zealand has recently finalized a Free Trade Agreement (FTA) with India. Prime Minister Christopher Luxon described this deal as a once-in-a-generation opportunity for New Zealand to advance its relationship with India.
On April 27, both nations signed the FTA, which grants New Zealand complete tariff exemption on 100% of its exports to India. Conversely, 95% of goods imported from New Zealand to India will also enjoy tariff-free access.
In a video shared on social media platform X, PM Luxon remarked, “You may have heard over the weekend about the signing of the Indian FTA, and this is excellent news because it represents a once-in-a-generation opportunity for New Zealand. Why do I say this? Because India is now the world’s most populous country, with nearly 1.5 billion people. They are rapidly becoming wealthier and are looking for high-quality products and services from places like New Zealand. Most importantly, India is set to become the world’s third-largest economy.”
He added, “This is a significant opportunity for New Zealand as India transitions from a low-income to a middle-income economy, increasing the demand for New Zealand’s products and services. We export nearly 95% of our goods to India, and the good news is that from day one, 57% will be tariff-free, with this percentage increasing over time. As the Indian market expands, we can compete with products from around the world. This means more money in Kiwi pockets, higher incomes, and more jobs due to rapid growth in India.”
Under this agreement, India will gain immediate 100% duty-free access to all tariff products. This is a reduction from the current 10% tariff imposed by New Zealand on approximately 450 tariff items exported from India, including textiles, leather goods, ceramics, carpets, and vehicles.
The FTA also includes a provision for New Zealand to invest $20 billion in India over the next 15 years. Additionally, it encompasses several provisions related to the mobility of working professionals and students. For the first time, New Zealand has signed agreements regarding student mobility and post-study work visas with any country. Indian students will be able to work up to 20 hours per week with a post-study work visa while studying in New Zealand.
The agreement will also open up high-paying job opportunities for Indian professionals. Under the FTA, New Zealand will offer temporary work visas to skilled Indian professionals, allowing them to work in New Zealand for up to three years. However, this quota is limited to 5,000 visas.
As part of the working holiday visa program included in the agreement, 1,000 young Indians will be able to enter New Zealand multiple times for a duration of 12 months each year.
India successfully negotiated to exclude several items from the FTA, including all dairy products such as milk, cream, whey, yogurt, and cheese, as well as various agricultural products.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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