India-NZ FTAImage Credit source: ai generated
27th April is going to be a very important day for the Indian economy. A historic Free Trade Agreement (FTA) will be signed between India and New Zealand at Bharat Mandapam in Delhi. Union Commerce Minister Piyush Goyal and New Zealand Trade Minister Todd McClay will seal this much-awaited deal. The direct impact of this agreement will not be limited to just big companies, but it is going to affect everything from the kitchen of the common man to the employment of the youth. On one hand, premium foreign products will become cheaper, on the other hand, new doors to the global market will open for Indian exporters.
Interest in foreign liquor and avocado will be cheaper
If you are fond of foreign liquor or premium fruits like blueberries and avocados, then this deal has brought good news for you. After the implementation of this agreement, India will reduce or completely eliminate the import duty on these products imported from New Zealand. Apart from this, duty on industrial goods like wool, coal and wood will also be reduced. Overall, more than 95 percent of New Zealand’s products (including sheep meat and forest products) will get duty-free access to India, which may reduce their prices in the domestic market.
Complete security for farmers and indigenous businessmen
Despite giving exemption to foreign products, the government has taken full care that Indian farmers and local producers do not suffer any loss. New Zealand is famous worldwide for its dairy products, but India has kept dairy items like milk, cheese, curd and cream out of this agreement. Along with this, items of daily use like onion, sugar, edible oil, spices and rubber have also been kept out of the scope of duty-free concessions. This clearly means that the domestic agricultural market will be completely safe and there will be no undue pressure from foreign competition on local farmers.
New job opportunities for Indian youth in New Zealand
The most attractive aspect of this FTA is related to the service sector and employed youth. New Zealand has set a special quota of 5,000 new visas every year for Indian professionals. Under this provision, India’s talented youth and IT professionals will be able to stay and work there for three years. This step is a great gift for the youth who want to make their career abroad.
Target of doubling trade and investment of 20 billion dollars
From a business perspective, this is going to prove to be a game changer for Indian companies. Now Indian exporters will be able to send their goods to New Zealand without any heavy duty (almost zero duty). Currently the total trade between the two countries is about $2.4 billion, which includes both services and goods. Through this agreement, an ambitious target has been set to double bilateral trade to 5 billion dollars in the next five years. Apart from this, about 20 billion dollars of foreign investment is expected to come to India in the next 15 years, which will give a new impetus to the Indian economy.
