New Delhi, Dec 23 (PTI) The free trade agreement (FTA) between India and New Zealand will help diversify exports, and attract investments in areas like agriculture, experts said.
The conclusion of negotiations
for the pact was announced on December 22. It is likely to be signed and implemented next year.
India and New Zealand on Monday said they have concluded talks on a free trade deal that will give India tariff-free access to the island nation’s markets, bring in USD 20 billion of investment over the next 15 years and help double bilateral trade in goods and services the next five years to USD 5 billion.
Federation of Indian Export Organisations (FIEO) President S C Ralhan said upon entry into force, the free trade agreement (FTA) will provide zero-duty access on 100 per cent of India’s exports, with tariff elimination across all tariff lines or product categories.
“It will enhance the competitiveness of Indian products in the New Zealand market and provide a major boost to employment-generating sectors,” he said.
International trade expert and Hi-Tech Gears Chairman Deep Kapuria said New Zealand’s commitment to invest USD 20 billion, particularly in dairy, agriculture, and infrastructure would significantly boost India’s farm sector productivity.
“New Zealand’s expertise in high-value agriculture products such as Kiwi, apple and dairy and their commitment to collaborate under FTA would be a positive gamechanger for Indian agriculture. New Zealand is also a high potential services export market for India. The pact would give a further boost to India’s already thriving services sector exports,” he said.
Economic think tank GTRI said an FTA alone is unlikely to unlock the full potential of India-New Zealand economic ties, as trade volumes remain modest.
“New Zealand could expand dairy and horticulture exports to India even at MFN tariffs (duties which are in force at present), while India could scale up exports of pharmaceuticals, textiles, and IT services to New Zealand. Wellington could also diversify by growing education, tourism and aviation training services for Indian students and professionals,” GTRI Founder Ajay Srivastava said. PTI RR TRB
