India and New Zealand have finalized a Free Trade Agreement (FTA) aimed at doubling bilateral trade within five years. The agreement, announced after a phone call between Indian Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon, is seen as a significant milestone in enhancing economic and trade relations between the two countries.
The FTA is expected to boost trade, investment, agriculture, MSMEs, and create opportunities for students and young entrepreneurs. Key highlights include:
– Tariff Reduction: India will reduce or eliminate tariffs on nearly 95% of New Zealand’s products from day one.
– Investment: New Zealand plans to invest around $20 billion in India over the next 15 years.
– Trade Growth: Bilateral trade is expected to double in the next five years, with current trade standing at $1.3 billion (2024-25), up 49% from the previous year.
The agreement was negotiated in just nine months, reflecting strong political will. It aims to enhance economic and strategic cooperation, creating opportunities for employment, exports, and growth.