The Indian industry has warmly welcomed the Free Trade Agreement (FTA) between India and New Zealand. The Confederation of Indian Industry (CII) stated that this is a significant and forward-looking step that will elevate the economic relations between the two countries to new heights.
The agreement is based on shared goals such as trade diversification, innovation, and sustainable development, laying the foundation for a strong and lasting partnership.
Investment Commitment: New Zealand has pledged to encourage investments of up to $20 billion in India over the next 15 years. Trade Growth: The goal is to increase bilateral trade to $5 billion within the next five years. Duty-Free Access: Under this FTA, Indian exports could receive 100% duty-free access, leading to significant trade expansion in the coming years.
Infrastructure & Innovation: The investment is expected to boost India’s industrial infrastructure, manufacturing ecosystem, and the development of innovation hubs.
Sector-Specific Impact , The CII noted that several key sectors will benefit from increased exports and global competitiveness: Core Industries: Transport, Automobile, Pharmaceuticals, Plastics, Rubber, Electrical/Electronic equipment, and Machinery. Emerging Sectors: Advanced Manufacturing, Agritech, Food Processing, and Digital Technology.
Traditional Sectors: Textiles, Leather, Ceramics, and Auto components will find new markets due to the elimination of tariffs.
CII Director General Chandrajit Banerjee congratulated the Indian government on this historic deal. He emphasized that combining India’s vast potential and digital strength with New Zealand’s innovation capacity can create globally competitive industries.
Furthermore, the partnership in Green and Sustainable Manufacturing will assist both nations in achieving their climate goals. The agreement is also expected to increase productivity, reduce trade costs, and provide strong support to the MSME sector (Micro, Small, and Medium Enterprises).
New Zealand Commits to Promoting $20 Billion Investment in India: CII
