India-New Zealand FTA: 100-95 Tariff Deal, Dairy Excluded
Why in the news
A fresh India-New Zealand trade pact trims tariffs on both sides while shielding India’s sensitive sectors.
Key facts
- Tariff structure: NZ zero duty on 100% Indian goods; India eases duty on 95% of NZ imports.
- Exclusions: dairy (milk, cheese, butter, curd); onions, chana, sugar, honey; gems and jewellery.
- Investment: $20 billion pledged over 15 years, tied to Make in India.
- Mobility: easier visas for IT professionals, engineers and healthcare workers; mutual recognition of qualifications.
- Trade before signing: India has a surplus with New Zealand.
| Pre-FTA trade | Value | Change | Main items |
|---|---|---|---|
| India’s exports to NZ | $711.1 million | Up 32.1% | Pharmaceuticals, textiles |
| India’s imports from NZ | $587.1 million | Up 75.2% | Wood, fruit such as kiwis, machinery |
Key terms
- Movement of natural persons: temporary mobility of skilled professionals under a trade deal.
- Non-tariff barriers: hurdles other than duties, like labelling, sanitary standards or rules of origin; the FTA plans committees to resolve them.
- Rules-based trade: transparent, agreed laws instead of arbitrary decisions, giving businesses predictability.
Significance
- Benefits Indian textiles, leather and pharmaceuticals through zero duty.
- Opens Pacific markets for Indian IT, ITES and health services.
- Startup cooperation, especially in agri-tech and fintech; investment aims at high-tech manufacturing, green energy and infrastructure.
Exam angle
- Formula: 100% from NZ, 95% from India.
- Investment pledge: $20 billion in 15 years.
- Dairy fully excluded.