India and New Zealand signed a Free Trade Agreement (FTA) on Monday after many years of talks. The FTA is called a ‘once-in-a-generation’ trade deal, which was signed by Commerce and Industry Minister Piyush Goyal and New Zealand Trade and Investment Minister Todd McClay in Delhi. The trade between the two countries emphasises reducing taxes on imports and exports to make trade easier and more efficient.
This remarkable step is expected to increase Indian exports, which will ultimately result in rising employment opportunities across various sectors, especially in the MSME. Additionally, the trade deal is forecasted to double the bilateral trade between the two countries to $5 billion in the next five years.
Apart from this, New Zealand is committed to investing approximately $ 20 billion to strengthen both countries’ agricultural, manufacturing, innovation, and technology sectors. The FTA also includes easier visas for Indians who want to work or study there.
Likewise, India will also reduce taxes on New Zealand products. But India’s main focus is on protecting its farmers and local producers from exploitation.
Also read: Sun Pharma Strikes $11.8 Billion Deal to Buy Organon
The deal is significantly beneficial for India in achieving access to one more resilient international market. India is aiming to expand its market by making trade deals with many countries to reduce dependency on a single market. The strategic move positions India to expand exports, increase foreign investment, create jobs, and enhance its influence in the Indo-Pacific region.
