Finance
On Sunday, Commerce and Industry Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay met with representatives from the leather and footwear, AYUSH, pharmaceutical, medical device, light engineering, and sports goods industries in Agra.
“Had an enriching engagement” with the business leaders and “was also joined by my friend Mr Todd McClay MP, Minister for Trade & Investment, New Zealand”, Goyal wrote on X.
“Also, launched the ‘Agra: World Capital of Footwear’ brand campaign, celebrating the skills of our artisans and women entrepreneurs, and positioning Agra as a global sourcing destination, employment engine, and export powerhouse,” the minister said.
Goyal further stated that the India-New Zealand FTA marks a defining milestone, unlocking new opportunities for our farmers, women, artisans, MSMEs, businesses, and skilled professionals.
“In line with Prime Minister Narendra Modi’s vision, this agreement is a gateway to a deeper, more enduring and people-centred partnership between our two nations,” he added.
McClay reaffirmed that India is a strategic priority for New Zealand and urged businesses to actively pursue joint ventures and investment in India.
On Monday, India and New Zealand will sign a Free Trade Agreement (FTA) that will eliminate tariffs on all of India’s exports to New Zealand and substantially lower or eliminate tariffs on 95% of the country’s imports from New Zealand.
The agreement will give India instant duty-free access to 100 percent of tariff lines. This is reduced from the 10% tariff. New Zealand imposes tariffs on over 450 Indian goods, including textiles and clothes, leather and headgear, ceramics, carpets, and automobiles and auto components.
India has also managed to keep some things out of the FTA, including all dairy products such as milk, cream, whey, yoghurt, and cheese, as well as agricultural produce.
The FTA also includes a condition that New Zealand will spend $20 billion in India over a 15-year period. This is comparable to the European Free Trade Association’s $100 billion investment ‘promise’ in its free trade agreement with India.
Furthermore, the FTA includes various clauses governing the migration of working professionals and students. For the first time, New Zealand has signed an annex with another country governing student mobility and post-study employment visas. This allows Indian students to work up to 20 hours per week while studying in New Zealand, with extended post-study work permits.
The agreement also includes a quota of 5,000 visas for skilled Indians to work for up to three years in sectors of interest to India, such as AYUSH practitioners, yoga instructors, chefs, and music teachers, as well as other key sectors such as IT, engineering, healthcare, education, and construction.
The deal includes a Working Holiday Visa programme that allows 1,000 young Indians to enter New Zealand several times per year for a period of 12 months.
Source: IANS
