The India-New Zealand Free Trade Agreement came into force on October 20, coinciding with Vijay Dashami. The pact grants duty-free access for 100 per cent of Indian exports to New Zealand and is intended to widen commercial opportunities between the two countries.

Commerce and Industry Minister Piyush Goyal said at a ceremony in New Delhi that the agreement supports the vision of Viksit Bharat 2047. He said it would create opportunities for Indian exporters, particularly micro, small and medium enterprises, artisans, farmers and pharmaceutical companies.

India and New Zealand have agreed to work towards doubling bilateral trade in goods and services to approximately Rs. 350 bn by 2030. The agreement is also positioned as part of India’s effort to build partnerships with developed economies that improve market access, create employment and support young people, women and smaller businesses.

New Zealand has eliminated customs duties on all tariff lines covering Indian exports, removing peak tariffs of up to 10 per cent. Textiles, apparel, leather, footwear, gems and jewellery, engineering goods, automobiles and auto components, chemicals, pharmaceuticals, agricultural products and processed foods are among the sectors expected to benefit. Duty-free access for wooden logs, coking coal and metal waste and scrap is set to support manufacturing and supply chains.

The pharmaceutical and medical device sectors will receive streamlined regulatory processes. New Zealand has also provided dedicated access for health and traditional medicine services, including Ayurveda, yoga and other AYUSH systems. Indian youth and professionals will have access each year to 5,000 Temporary Employment Entry visas and 1,000 Working Holiday visas. There will be no numerical cap on Indian students, while post-study work rights will extend to three years for STEM bachelor’s and master’s graduates and four years for doctoral scholars.