India, New Zealand Sign FTA; $20 Billion Investment, 5,000 Visas for Indians

New Delhi (IANS): India and New Zealand signed a comprehensive Free Trade Agreement (FTA) on Monday. The pact, finalized in a record nine months, eliminates tariffs on 100% of Indian exports and secures a $20 billion investment commitment from New Zealand over the next 15 years.

Immediate Gains for Indian Industry

The agreement provides India with immediate duty-free access to the New Zealand market across all tariff lines. This move is expected to be a major catalyst for labour-intensive sectors:

• Leather & Footwear: The sector is projected to grow to $50 billion by 2030. Specifically, the agreement eliminates the 5% tariff on leather goods, positioning hubs like Agra as global sourcing powerhouses.
• Textiles and Apparel: Removal of existing 10% tariffs will give Indian garments a decisive competitive edge.
• Pharmaceuticals: The deal introduces faster regulatory pathways, with New Zealand agreeing to accept inspection reports from international regulators, significantly reducing compliance costs for Indian drug manufacturers.

Mobility and Visas: A Global Talent Framework

A key pillar of the FTA is the focus on talent mobility, featuring several “firsts” for New Zealand’s trade policy:

• Professional Quota: A dedicated quota of 5,000 visas has been established for skilled Indians. This includes IT professionals, engineers, and healthcare workers, alongside a unique focus on AYUSH practitioners, yoga instructors, and Indian chefs.
• Student Benefits: For the first time, New Zealand has signed an annex on student mobility. Indian students can now work 20 hours per week while studying and access extended post-study work visas (up to three years for STEM graduates and four years for doctoral scholars).
• Working Holiday Scheme: 1,000 young Indians annually will be eligible for a 12-month multiple-entry visa to work and travel in New Zealand.

Protecting National Interests

To safeguard domestic agriculture, India has successfully kept sensitive sectors—most notably all dairy products (milk, yogurt, cheese)—outside the scope of the agreement. Other exclusions include sensitive farm products like onions, sugar, and edible oils.

New Zealand’s Market Access

In exchange, New Zealand will see tariffs reduced or removed on 95% of its current imports to India. While dairy remains protected, New Zealand exporters will gain enhanced access for products such as wool, coal, wood, wine, and high-value fruits like avocados and blueberries.

The agreement was signed by Union Commerce Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay. Minister Goyal described the pact as a “comprehensive framework” that goes beyond mere tariffs to foster a long-term strategic partnership in innovation and people-to-people ties.