Wellington/New Delhi6 minutes ago
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The deal on Free Trade Agreement (FTA) between India and New Zealand has been finalized on Monday. New Zealand Prime Minister Christopher Luxon announced this on Monday. He said this would make it easier for their exporters to reach the world’s most populous market.
This deal will give New Zealand exporters easy access to the middle class in India. Under the deal, import duty on 95% of goods coming to India from New Zealand has either been eliminated or significantly reduced. In this, more than half of the products will become duty free from the first day.
Kiwi fruits, apples and wool will be cheaper
This agreement will have a direct impact on the pockets of common Indian customers. Fresh fruits coming from New Zealand, especially kiwi and apples, will now attract significantly lower taxes. Apart from this, wool and its products, wood and certain types of dairy items will also become cheaper.
You will get benefits from the first day of the deal
- According to the New Zealand government, there will be no duty on more than 50% of the goods from ‘day-one’ i.e. the first day of the agreement.
- This means that from tomorrow itself, more than half of the goods coming from New Zealand will be able to be sold in the Indian market without any extra tax.
- This is expected to make foreign fruits, wines and other dairy products cheaper for India’s rapidly growing middle class.
Indian economy will be worth $7 trillion by 2030
New Zealand has made this deal in view of India’s growing economic strength. The Kiwi government estimates that by the year 2030, the Indian economy will be worth about 12 trillion New Zealand dollars (about ₹ 627.21 lakh crore).
India is a big opportunity for New Zealand businesses, as its population and growing purchasing power can become the world’s largest platform for their dairy, fresh fruit and wool industries.
Was stuck for 10 years, deal finalized in 9 months
Negotiations regarding this trade agreement between India and New Zealand were stalled for 10 years. In March this year, both the countries started discussing it again and finalized it within just 9 months.
Earlier, India has also signed similar agreements with Australia and UAE, which has strengthened India’s global trade partnership. India has signed 7 free trade deals in the last 5 years.
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