Page 35 - NIS English 16-31 May, 2026

Free Trade Agreement | INTERNATIONAL

Enhanced Trade Agreement
This agreement is poised to foster a robust economic
partnership and stimulate investment. Trade in goods and billion in
The India-New Zealand Free Trade Agreement (FTA) services between 2.4 the year
was signed by Union Minister of Commerce and Indus- India and New 2024
try Piyush Goyal and New Zealand’s Minister for Trade Zealand reached US$
and Investment, Todd McClay. This agreement will
eliminate tariffs on Indian exports, thereby boosting In the financial year 2024-25, bilateral
merchandise trade between the two nations stood
labor-intensive sectors. It will also strengthen Micro, at US$ 1.3 billion. This represents a 49 percent
Small, and Medium Enterprises (MSMEs). Simulta- increase compared to the previous year. Trade is
neously, it ensures full protection for sectors such expected to grow further following this FTA.
as agriculture and dairy. This agreement will expand
opportunities for students and skilled professionals.
It will also provide support to agricultural productivity
and investment commitments. By eliminating non-tariff
barriers, this Free Trade Agreement will bolster India’s
strategic economic presence in the Indo-Pacific region.
Furthermore, this agreement stands as a testament to
a forward-looking approach toward the goal of a ‘De-
veloped India’ by 2047. The agreement will come into
effect following the completion of domestic procedures
and ratification by both nations.

NEW OPPORTUNITIES TO UNFOLD Increased Organic Products Trade
Following the signing of the agreement between India Trade in organic products will receive a boost
and New Zealand, Prime Minister Narendra Modi through a Mutual Recognition Agreement. In the
stated in his message that this marks a historic day for initial phase, a Mutual Recognition Arrangement
India’s global engagement and shared prosperity. The (MRA) will be implemented. Following the
implementation of the MRA, demand is
signing of the India-New Zealand Free Trade Agreement expected to rise for products such as Basmati
symbolizes our strengthening economic ties, mutual rice, flaxseed, Arabica cherry, Isabgol, soybean oil
trust, and shared objectives. I extend my heartfelt con- cake, and organic black tea.
gratulations to the people of both nations—particularly
the youth, who constitute the very strength of our econ-
omies. This modern and balanced agreement will foster importance of skills, talent, and mobility. Consequently,
collective growth by leveraging the respective strengths it will create greater opportunities for skilled profes-
of both countries. It will unlock new opportunities for sionals, youth, and students. Finally, this agreement will
farmers, artisans, the youth, entrepreneurs, women, accord global recognition to the traditional knowledge
and MSMEs. Access to global markets will expand across systems of both nations—such as organic products,
sectors such as agriculture, manufacturing, technology, AYUSH, and Yoga—thereby bridging our rich traditions
education, and services. Through partnerships in agri- with the opportunities of the future. Both countries will
cultural productivity and Centers of Excellence, New combine their strengths to build robust supply chains
Zealand’s modern agricultural expertise will be integrat- and produce affordable and competitive goods and
ed with India’s priorities. This will lead to improvements services. This will open up new avenues for growth.
in productivity, infrastructure, and farmers’ incomes.
Over the past decade, India has been actively working to COMMITMENT TO STRONGER PEOPLE-TO-
establish itself as a major hub in the global manufactur- PEOPLE TIES TO BE STRENGTHENED
ing supply chain. This agreement recognizes the critical In a message following the agreement, New Zealand

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