Historic Free Trade Agreement Signed Between India and New Zealand
A new golden chapter has been added to the bilateral relations between India and New Zealand with the signing of a historic free trade agreement (FTA). New Zealand's Prime Minister Christopher Luxon described this agreement as a revolutionary step that occurs 'once in a generation.' Under this agreement, New Zealand exporters will gain direct access to the vast Indian market, which has a population of 1.4 billion.
Luxon expressed happiness, stating that what was considered impossible for decades has now become a reality under the leadership of Prime Minister Narendra Modi. This deal is expected to elevate the economies of both countries to new heights. India's Minister of Commerce and Industry Piyush Goyal shared important details of the agreement, noting that upon its implementation, nearly 70 percent of products exported from India to New Zealand will now be exempt from customs duty.
This move will particularly benefit India's micro, small, and medium enterprises (MSMEs) and traditional artisans. Goyal highlighted that the leather industry in Agra and the handloom sector in Uttar Pradesh will directly benefit from this agreement. Handicraft products under the 'One District, One Product' (ODOP) initiative will now gain global recognition, leading to a significant increase in the income of local weavers.
Alongside trade, this agreement will also strengthen strategic partnerships and connectivity. New Zealand's Trade Minister Todd McClay emphasized that India is a 'strategic priority' for New Zealand, and direct flights between the two countries are expected to commence soon. This will not only facilitate business travel but also provide a significant boost to the tourism sector.
Experts believe that this FTA will open new avenues for investment in sectors such as agriculture, dairy, and technology. For India, this agreement represents a major strategic step towards making its economy the third-largest power in the world, which will also help reduce the trade deficit in the future.
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