New Delhi, April 29: A recent free trade agreement (FTA) between India and New Zealand has been hailed by Prime Minister Christopher Luxon as a once-in-a-generation opportunity for New Zealand. The agreement, signed on April 27, will provide New Zealand with tariff-free access to 100% of India‘s exports, while 95% of goods coming from New Zealand to India will also enjoy tariff exemptions.
In a video released on social media platform X, PM Luxon expressed optimism about the deal, stating, “You may have heard over the weekend about the Indian FTA being signed, and this is great news because it is a once-in-a-generation opportunity for New Zealand. Why do I say this? Because India is now the most populous country in the world, with nearly 1.5 billion people. They are becoming increasingly affluent and are looking for better quality products and services from places like New Zealand. Most importantly, India is set to become the world’s third-largest economy.”
He emphasized the significant potential for New Zealand as India transitions from a low-income to a middle-income economy, increasing demand for New Zealand’s products and services. The agreement allows for immediate tariff-free access for 57% of goods exported to India, with this figure expected to grow as the Indian market expands. This growth could lead to increased income for New Zealanders and more job opportunities due to the rapid economic growth in India.
Under the FTA, India will gain immediate 100% duty-free access to all tariff products. This is a reduction from the current 10% tariff imposed on approximately 450 tariff items exported from New Zealand to India, including textiles, leather goods, ceramics, carpets, and automotive parts.
Additionally, the agreement includes a provision for New Zealand to invest $20 billion in India over the next 15 years. It also features several provisions related to the movement of skilled professionals and students. For the first time, New Zealand has signed agreements concerning student mobility and post-study work visas, allowing Indian students to work up to 20 hours per week during their studies in New Zealand.
Indian professionals will also benefit from high-paying job opportunities, as New Zealand will grant temporary work visas to skilled Indian professionals, allowing them to work in New Zealand for up to three years, with a quota of 5,000 visas.
Furthermore, the working holiday visa program will enable 1,000 young Indians to enter New Zealand multiple times for a period of 12 months each year.
India has successfully excluded several items, including dairy products like milk, cream, whey, yogurt, and paneer, as well as various agricultural products from the free trade agreement.