New Zealand has agreed to invest $20 billion in India over the next 15 years. (Photo: Getty Images)

India-New Zealand FTA from October 20: Duty-free access, $20 billion investment

The agreement will give all Indian goods duty-free access to New Zealand. It will also make it easier for students and workers to move between the two countries.

by · India Today

In Short

  • India-New Zealand FTA to start from October 20
  • Indian goods get duty-free access to New Zealand
  • NZ to invest $20 billion in India over 15 years

India and New Zealand's free trade agreement (FTA), signed in April, will come into effect on October 20, Indian Trade Minister Piyush Goyal said on Monday, reported Reuters.

The pact comes as India looks to expand its export markets and attract investment at a time when global trade is seeing major changes.

INDIA LOOKS BEYOND US FOR EXPORT MARKETS

The deal with New Zealand comes amid growing uncertainty over global trade. US President Donald Trump has signed a law that gives him the authority to impose tariffs of up to 100% on countries such as India for buying Russian oil.

The US is India's biggest export market so far. India has been stepping up efforts to reduce its dependence on the US by building stronger trade ties with other major economies, including Britain and the European Union.

New Zealand's parliament last week passed legislation to put the India trade agreement into effect. Under the pact, tariffs on around 95% of New Zealand's exports to India, including wine, kiwi fruit and apples, will be removed or significantly reduced.

INDIAN GOODS TO GET DUTY-FREE ACCESS

The agreement will give all Indian goods duty-free access to New Zealand. It will also make it easier for students and workers to move between the two countries.

New Zealand has agreed to invest $20 billion in India over the next 15 years.

The two countries have also set a target of doubling bilateral trade by 2030. Trade between India and New Zealand stood at around $2.3 billion in the 12 months through June.

TRADE TIES DEEPEN AMID GLOBAL UNCERTAINTY

New Zealand Trade Minister Todd McClay said the agreement showed that the two countries could reach mutually beneficial terms for trade and businesses despite rising tariffs and trade barriers globally.

The pact comes shortly after India criticised new US measures targeting countries that buy Russian oil. India said the measures could affect its bilateral ties with the US.

- Ends