5,000 Visas, 0 Duty, Cheaper Wines: Decoding The ‘Express’ India-New Zealand Free Trade Agreement

PM Modi said investment commitment of USD 20 billion by New Zealand will strengthen bilateral cooperation in agriculture, manufacturing, innovation & tech. News18 explains in FAQs

(From left) Piyush Goyal with NZ’s Todd McClay; PM Narendra Modi with NZ PM Christopher Luxon. (X)

Prime Minister Narendra Modi on Monday hailed the India-New Zealand free trade agreement as a landmark moment in the two countries’ partnership and said the pact will greatly benefit farmers, youth, women, MSMEs, startups, and students, among others.

“Today marks a landmark moment in the India-New Zealand partnership! I am delighted that the India-New Zealand FTA signed today will add unprecedented momentum to our developmental partnership. It reflects the deep trust, shared values and ambition that bind our two nations,” he said in a post on X.

Modi also said that the investment commitment of USD 20 billion by New Zealand will further strengthen the bilateral cooperation in agriculture, manufacturing, innovation and technology, paving the way for a more prosperous and dynamic future for both countries.

News18 explains the power of 5,000 visas and zero duty:

NEGOTIATIONS LAUNCHED 13 MONTHS AGO

New Zealand Prime Minister Christopher Luxon on Monday described the recently signed India-New Zealand Free Trade Agreement (FTA) as a “historic milestone” that extends far beyond economic cooperation, underscoring its strategic significance amid global uncertainties. In a post on X, Luxon recalled that it was just 13 months ago that he visited India and met Prime Minister Narendra Modi to formally launch negotiations for the agreement.

5 BIGGEST STRENGTHS OF THE AGREEMENT

1. ‘Expressway’ of 5,000 visas: Every year, at least 5,000 ‘Temporary Employment Entry Visas’ are guaranteed. Skilled professionals can now live and work in New Zealand for up to 3 years.

2. 100% duty-free access: ‘Made in India’ products like textiles, leather, plastic, and engineering goods will enter New Zealand with zero duty, boosting profits for Indian traders.

3. $20 billion ‘investment booster’: Over the next 15 years, New Zealand will invest $20 billion in India, giving a big push to infrastructure and start-ups.

4. ‘Kiwi’ technology for farmers: New Zealand experts will teach Indian farmers world-class techniques to grow kiwi, apples, and honey, which could be a game-changer for rural India.

5. Concessions on wine and spirits: Indian wines and spirits will get duty-free entry into New Zealand, while New Zealand wines will get increasing concessions in India over 10 years.

HOW DID THIS ‘EXPRESS’ AGREEMENT HAPPEN SO FAST?

Usually, FTAs take years, but this one was done in just nine months, according to reports, because:

• 1. Strategic fit: New Zealand’s expertise in agriculture and dairy and India’s huge market and manufacturing complement each other.
• 2. Looking for options beyond China: Both countries want to reduce their dependence on China for supply chains.
• 3. Foundation of trust: Under Piyush Goyal, India has signed 7 agreements in the last three and a half years, showing a new work culture focused on deadlines.

WHAT’S NEXT?

New Zealand is just the start. India’s real goal is to create direct trade corridors with the world’s biggest economies:

1. European Union and USA: Deals with these giants are expected in the coming months, which would be India’s biggest diplomatic win yet.

2. 9 FTAs: After these, India will have 9 FTAs with 38 developed countries.

3. Impact on global GDP: India will have direct access to about two-thirds of world trade and 65-70% of global GDP.

WHY IS THIS IMPORTANT FOR A DEVELOPED INDIA BY 2047?

1. Market access: Indian farmers, artisans, and MSMEs won’t have to face high tariffs in global markets.

2. Investment flow: New Zealand’s $20 billion is just the beginning. Deals with the US and EU will bring billions more in foreign investment.

3. Strength for the service sector: It will be easier for young Indians in IT and services to work in developed countries.

KEY FAQs

How was the FTA with New Zealand completed so quickly, according to reports in nine months?

It was possible because of shared democratic values, trust, and the need to reduce dependence on China. Piyush Goyal called it a result of ‘trust and strong relations.’

Is India going to sign a deal with the US too?

Yes, according to the Commerce Minister, two big deals with the US and EU are expected in the coming months.

What impact will these 9 FTAs have on India’s GDP?

After these deals, India will have access to about 65-70% of global GDP, which is expected to boost exports and the economy.

How will this agreement benefit ordinary young people?

This FTA will create new opportunities in start-ups, the digital economy, and technology, and open up ways for young people to show their skills in the global market.

With News18 Hindi, PTI inputs

Read More