New Zealand inks India FTA with $20-bn commitment

SERVICES KEY GAIN FOR NEW DELHI; TRADE SET TO DOUBLE TO $5 BN

- MUKESH JAGOTA

INDIA HAS SECURED a $20 billion investment commitment over 15 years, increased employment avenues for its professionals and zero duty access to the New Zealand market for all its products under a bilateral free trade agreement (FTA) finalised on Monday. In return, New Delhi would allow imports of sheep meat, wines, apples, wood, petroleum, steel and aluminium under lower duties.

The conclusion of the FTA talks which took nine months was announced after a telephonic conversation between Prime Minister Narendra Modi and his New Zealand counterpart Christopher Luxon.

The agreement is likely to come into force by July-August next year after the completion of the legal process, Commerce and Industry Minister Piyush Goyal said.

Through the agreement, both countries are aiming to double their bilateral trade in goods and services to $5 billion from $2.4 billion at present.

In 2024-25, the bilateral goods trade stood at $1.29 billion with India’s exports at $711.08 million and imports at $587.15 million. India’s services exports to New Zealand stood at $634 million in 2024 and imports were $611 million.