Commerce and Industry Minister Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay met with leaders from the leather and footwear, AYUSH, pharma, medical devices, light engineering and sports goods sectors in Agra on Sunday.
"Had an enriching engagement" with the business leaders and "was also joined by my friend Mr Todd McClay MP, Minister for Trade & Investment, New Zealand", Goyal wrote on X. "Also, launched the 'Agra: World Capital of Footwear' brand campaign, celebrating the skills of our artisans and women entrepreneurs, and positioning Agra as a global sourcing destination, employment engine, and export powerhouse," the minister said.
Goyal further stated that the India-New Zealand FTA marks a defining milestone, unlocking new opportunities for our farmers, women, artisans, MSMEs, businesses, and skilled professionals. "In line with Prime Minister Narendra Modi’s vision, this agreement is a gateway to a deeper, more enduring and people-centred partnership between our two nations," he added.
McClay reaffirmed that India is a strategic priority for New Zealand and urged businesses to actively pursue joint ventures and investment in India. India and New Zealand will sign the Free Trade Agreement (FTA) on Monday, which will remove tariffs on 100 per cent of India’s exports to New Zealand, and either sharply reduce or remove tariffs on 95 per cent of the country’s imports from New Zealand.
The deal will provide India with immediate duty-free access on 100 per cent of tariff lines. This is down from the 10 per cent tariff New Zealand currently levies on about 450 tariff lines that India exports, including textiles and apparel products, leather and headgear, ceramics, carpets, and automobiles and auto components.
India has also managed to keep several items out of the FTA, including all dairy products such as milk, cream, whey, yoghurt and cheese, as well as farm products. The FTA also includes a provision wherein New Zealand will invest $20 billion in India over 15 years.
This is in the same vein as the $100 billion investment ‘commitment’ the European Free Trade Association made in their FTA with India. Besides, the FTA also includes several provisions relating to the mobility of working professionals and students.
New Zealand has signed an annex on student mobility and post-study work visas for the first time with any country. Under this, Indian students can work up to 20 hours per week while studying in New Zealand, with extended post-study work visas.
Further, the agreement includes a quota of 5,000 visas for skilled Indians for a stay of up to three years in the sectors of interest to India, which include AYUSH practitioners, yoga instructors, chefs, and music teachers, as well as other key sectors such as IT, engineering, healthcare, education, and construction.
Under the Working Holiday Visa programme included in the agreement, 1,000 young Indians annually can avail multiple entries in New Zealand for a period of 12 months.