New Delhi, The free trade agreement (FTA) signed between India and New Zealand will give a major boost to domestic exports as it would provide duty-free access to all Indian goods, say experts.
Gulzar Didwania, Partner, Deloitte India, said the pact sectorally, manufacturing, pharmaceuticals, IT and professional services stand to benefit due to reduced tariffs as well as expanded market access.
"From India's perspective, the investment commitment of USD 20 billion creates investment opportunities in agri technology, food processing, logistics and services through a structured investment facilitation framework," Didwania said.
Importantly, he said, it reflects a shift away from tariff-led liberalisation toward productivity, capability building and long-term cooperation.
International trade expert and Hi-Tech Gears Chairman Deep Kapuria said the FTA would be a "game changer" in bilateral trade relations. "The real gain would be realised in services sector where under the FTA a new Temporary Employment Entry visa has been agreed for Indian professionals with a quota of 5,000 work visa," Kapuria said.
New Zealand commitment to invest USD 20 billion over a 15 years time would have positive impact on Food-Processing, energy and digital services sectors, Kapuria added.
Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said with 100 per cent duty-free access to the New Zealand market, Indian products will gain immediate price competitiveness, particularly in labour-intensive segments such as garments and textiles.
"This will support higher export volumes, job creation, and growth of MSMEs across the value chain," he said. The deal has the potential to triple India's ready-made garment (RMG) exports to New Zealand within the next two years.
New Zealand imports over USD 1.2 billion worth of ready-made garments annually, with India currently holding a share of around 4.4 per cent.
He noted that the FTA presents a strong opportunity to significantly enhance India's presence in this market, especially in key categories such as cotton T-shirts, shirts, knitwear, and garments.
Trade Promotion Council of India Chairman Mohit Singla said the agreement is expected to significantly enhance market access for Indian agri-food products, including processed foods, beverages, spices, and marine products, by reducing tariffs and facilitating the overcoming of non-tariff barriers.
"The FTA also opens new avenues for high-growth segments such as organic and health foods, where Indian exporters are well-positioned to meet evolving consumer preferences in New Zealand," he said.
Singla added that New Zealand companies may invest in India's food processing infrastructure, while domestic firms can explore partnerships in New Zealand's agri-tech and premium food segments like organic, natural, and health-oriented food products.
Source Name : Economic Times