Experts are of the view that the free trade agreement (FTA) between India and New Zealand will help diversify exports and attract investments in areas like agriculture.
India and New Zealand have concluded talks on a free trade deal that will give India tariff-free access to the island nation's markets, bring in US $20 billion of investment over the next 15 years and help double bilateral trade in goods and services over the next five years to US $5 billion.
Federation of Indian Export Organisations (FIEO) president S C Ralhan said the free trade agreement (FTA) would 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 US $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 like kiwi, apple and dairy and its commitment to collaborate under FTA would be a positive game changer 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 Global Trade Research Initiative (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.
Also read: India links duty cuts on NZ apples to agri action plans
Follow us
