India-New Zealand FTA Set to Transform Trade Landscape
In a significant move towards strengthening bilateral ties, Union Minister for Commerce and Industry, Shri Piyush Goyal, along with New Zealand’s Minister for Trade and Investment, Mr. Todd McClay, engaged with industry representatives in Agra on the eve of the signing of the India-New Zealand Free Trade Agreement (FTA). The event also featured participation from Shri S P Baghel, Minister of State for Fisheries, Animal Husbandry, and Dairying, highlighting the commitment to fostering collaboration across various sectors.
The Industry Engagement Programme attracted key players from diverse industries, including leather and footwear, AYUSH, medical devices, light engineering, and sports goods. As the discussions unfolded, the representatives articulated the significant capabilities of India’s leather manufacturing, pharmaceutical, and engineering sectors.
Comprehensive Agreement Promises Broad Benefits
Emphasizing Prime Minister Shri Narendra Modi’s vision for inclusive trade relationships, both ministers outlined that the India-New Zealand FTA is much more than a simple tariff arrangement. It serves as a comprehensive framework designed to facilitate market access, enhance agricultural productivity, promote investment and talent mobility, and strengthen ties in sports, tourism, and cultural exchanges. This agreement aims to benefit a wide array of stakeholders, including manufacturers, farmers, MSMEs, women entrepreneurs, and skilled professionals from both nations.
Agra, a pivotal hub for India’s leather footwear industry, is notably recognized for producing around 75% of the nation’s leather footwear. The city boasts a Geographical Indication (GI) tag for its leather goods, making it a flagship product under India’s One District One Product initiative. The FTA will eliminate duties on 100% of Indian exports from the moment it comes into force, effectively lowering leather and footwear tariffs from 5% to zero. This strategic shift positions Indian exporters to gain a competitive edge, with industry forecasts estimating the sector could expand to USD 50 billion by 2030.
Addressing Key Opportunities in Healthcare and Education
During the engagement, discussions also touched on the pharmaceutical and medical devices sectors. Industry representatives welcomed the FTA’s provisions for accelerated regulatory access, which would streamline compliance and expedite product approvals for Indian manufacturers. Notably, a dedicated chapter on Health and Traditional Medicine is included in the FTA, marking a first for both countries and recognizing the importance of AYUSH.
Shri Goyal further emphasized the significant educational opportunities arising from the FTA, encouraging industry stakeholders to actively capitalize on new avenues for Indian students and professionals. He characterized the agreement as a gateway to a deeper, people-focused partnership between India and New Zealand.
Call to Action for Industry Representatives
In his address, Shri Goyal portrayed the FTA as a catalyst for innovation and collaboration, urging industry leaders to think creatively about leveraging the agreement across multiple sectors, including pharmaceuticals, AYUSH, education, sports, tourism, and investment. He called for industry bodies to ensure the benefits reach every MSME and small enterprise, fostering a more inclusive economic environment.
Mr. Todd McClay reiterated New Zealand’s commitment to India, clarifying that this agreement is the highest quality India-New Zealand FTA Set to Transform Trade Landscapeconcluded by New Zealand to date. He encouraged businesses on both sides to proactively engage in joint ventures, underscoring the considerable investment opportunities that abound in India’s burgeoning economy.
The Industry Engagement Programme was part of a series of high-level interactions coinciding with the landmark signing of the India-New Zealand FTA in New Delhi, a swift conclusion achieved in just nine months since its initiation on March 16, 2025, marking a promising new chapter in the economic relationship between the two nations.
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