The Ministry of External Affairs (MEA) has enthusiastically welcomed the recently concluded Free Trade Agreement (FTA) between India and New Zealand, describing it as a landmark deal poised to deliver substantial economic benefits.

This agreement, finalised after just nine months of negotiations, underscores a robust political commitment from both nations to deepen their economic partnership.

MEA Spokesperson Randhir Jaiswal highlighted the FTA's potential to generate jobs, particularly for the youth, while enhancing market access and fostering long-term growth. In a statement on X, he noted that the comprehensive pact covers goods, services, and investment, promising major economic gains for the people of both countries.

The announcement followed a telephone conversation on Monday between Prime Minister Narendra Modi and his New Zealand counterpart, Christopher Luxon. The two leaders jointly unveiled the FTA, agreeing that it would act as a catalyst for expanded trade, investment, innovation, and mutual opportunities.

Prime Minister Modi emphasised the swift timeline of the negotiations in his own X post, crediting the strong political will and shared ambitions of both sides. He described the conversation with Luxon as highly productive, marking this as a historic milestone in bilateral economic ties.

Key provisions of the FTA include zero-duty access on 100 per cent of goods exports upon its entry into force. This encompasses tariff elimination across 8,284 tariff lines, significantly broadening market access for Indian products in New Zealand.

The agreement opens fresh avenues for growth in sectors such as IT-ITES, finance, education, tourism, and audio-visual services. These areas align closely with India's service-oriented export strengths, potentially boosting revenues and employment in these high-potential industries.

New Zealand has pledged to channel USD 20 billion in investments into India over the next 15 years. This commitment targets manufacturing, infrastructure, services, innovation, and job creation, directly supporting India's Make in India initiative and its push for self-reliance.

External Affairs Minister S Jaishankar echoed these sentiments, hailing the FTA as a landmark advancement in India-New Zealand relations. In his X post, he praised the record speed of the talks under the leadership of Modi and Luxon, predicting an accelerated growth trajectory for the partnership.

Jaishankar stressed that the deal would invigorate trade, investment, and economic collaboration across multiple sectors. This positions the FTA as a pivotal step in diversifying India's trade portfolio beyond traditional partners.

For India, the FTA represents a strategic expansion into the Oceania region, where New Zealand serves as a gateway to advanced markets. It complements ongoing efforts to integrate with global supply chains, especially amid geopolitical shifts affecting traditional trade routes.

New Zealand gains from India's burgeoning consumer market and its prowess in digital services. The tariff reductions will ease exports of dairy, meat, wine, and machinery—key Kiwi strengths—while fostering joint ventures in technology and renewables.

Economists anticipate the FTA could double bilateral trade, currently valued at around USD 1.7 billion annually, within five years. This projection hinges on streamlined customs, reduced non-tariff barriers, and enhanced investor confidence.

The services chapter stands out, with mutual recognition of qualifications in professional fields like nursing, engineering, and IT. This facilitates labour mobility, addressing skill shortages in both economies.

Investment protections under the FTA include dispute resolution mechanisms and intellectual property safeguards, crucial for tech transfers and R&D collaborations. India's pharmaceuticals and software sectors stand to benefit immensely.

Sustainability features are woven into the agreement, with commitments to labour standards, environmental protection, and gender equality in trade. These align with global norms, enhancing the FTA's appeal to ethical investors.

The rapid negotiation timeline—concluded in under a year—contrasts with lengthier pacts like those with the EU or UK. It reflects pragmatic diplomacy, sidestepping contentious issues through focused bilateral priorities.

Critics may point to potential agricultural sensitivities, given New Zealand's dairy prowess and India's farmer concerns. However, safeguard mechanisms and phased implementations mitigate such risks.

Implementation will require domestic ratification in India, likely via parliamentary approval, followed by operationalisation through joint committees. Early movers in textiles, gems, and auto components could seize first-mover advantages.

This FTA bolsters India's Indo-Pacific strategy, complementing deals like the one with Australia and ongoing ASEAN talks. It signals New Delhi's intent to forge resilient economic alliances amid global uncertainties.

The India-New Zealand FTA emerges as a win-win proposition, blending immediate tariff relief with visionary investments. As both nations ratify and activate it, expect a surge in business delegations, joint ventures, and economic diplomacy.

Based On ANI Report