India-New Zealand free trade pact to take effect October 20

The Free Trade Agreement between India and New Zealand will become operational on October 20, coinciding with the festival of Dussehra, according to an announcement by Commerce and Industry Minister Piyush Goyal. The two nations inked the agreement on April 27 with the objective of expanding two-way commerce and facilitating greater investment flows between the countries.

The FTA represents a significant development for Indian exporters, with the agreement guaranteeing duty-free access for 100 per cent of India's goods to the New Zealand market. This provision addresses long-standing tariff barriers that have constrained Indian exports, as New Zealand currently maintains peak tariff rates of up to 10 per cent on several key Indian products including ceramics, carpets, automobiles, and auto components.

New Zealand has additionally committed to investing USD 20 billion in India over a 15-year period, signalling confidence in the Indian economy and strengthening the bilateral economic relationship. The agreement is expected to create new opportunities for Indian businesses seeking to expand into the Pacific region while facilitating New Zealand's access to India's growing consumer markets.