The India-New Zealand Free Trade Agreement (FTA) will come into force on October 20, providing duty-free access to 100% of India's exports to New Zealand from the date of implementation, Commerce and Industry Minister Piyush Goyal said on Monday.
The October 20 implementation date coincides with Vijayadashami. Goyal described the occasion as symbolising the triumph of good over evil and said it would provide positive momentum to bilateral economic relations.
The two countries have set an aspirational target of doubling bilateral trade in goods and services to nearly Rs 35,000 crore over the next four to five years, under their strategic partnership and roadmap to 2030.
The agreement is also expected to facilitate investments worth $20 billion from New Zealand to India over the next 15 years, with potential investments spanning agricultural technology, innovation, engineering and manufacturing, Goyal said while announcing the date of the FTA going live.
The FTA will establish an agricultural productivity partnership to help bring New Zealand's technology and expertise to Indian agriculture, particularly in areas such as kiwi cultivation and honey production.
"New Zealand has cutting-edge technology and innovation. Agriculture is one of their strengths in certain projects like kiwi farming and honey farming," Goyal said, highlighting the potential to improve farm productivity in India.
He said New Zealand companies could either support Indian businesses through technology partnerships or invest in and establish manufacturing facilities in India to access global markets.
"Investors are very excited about coming and investing and manufacturing in India because not only do they get the large scale of the Indian market, but they can seamlessly export to almost two-thirds of the world where we have preferential market access," Goyal said.
The agricultural productivity partnership is intended to support Indian farmers through technology transfer and innovation. Goyal said the partnership could help improve productivity in mountainous regions and the Northeast, where kiwi plantations could be developed.
Referring to his visits to New Zealand farms, the minister said some 15–20-acre farms generated incomes running into crores of rupees through kiwi cultivation.
Beyond agriculture, Goyal said New Zealand's engineering and manufacturing capabilities could support Indian companies and encourage investments in production facilities in India.
The investments envisaged under the FTA would therefore cover both agricultural technology cooperation and manufacturing for global markets, while enabling New Zealand businesses to leverage India's domestic market and export access.
New Zealand Trade and Investment Minister Todd McClay said the agreement would provide businesses in both countries with confidence to invest, expand and build commercial relationships.
McClay said the negotiations, which began during New Zealand Prime Minister Christopher Luxon's visit to India, were completed in nine months. The agreement is scheduled to enter into force nine months after its conclusion.