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The India-New Zealand Free Trade Agreement (FTA), which comes into effect on October 20, will eliminate tariffs on Indian exports to New Zealand, providing greater market access to sectors including textiles, leather, pharmaceuticals and agricultural products, a senior Directorate General of Foreign Trade (DGFT) official said on Monday.
Speaking to ANI in Hyderabad, Sampath Kumar, Additional Director General of Foreign Trade, said the agreement would remove existing import duties of up to 10 per cent on several Indian products entering the New Zealand market. "From tomorrow onwards, the India-New Zealand Free Trade Agreement is going to be implemented. So, under this India-New Zealand free trade agreement, the unique feature is that 100% of tariff lines are going to become zero from tomorrow onwards," he said. Highlighting the benefits for labour-intensive industries, Kumar said, "Till now, the maximum tariff on the textile and clothing sector and leather and footwear is up to 10%. From tomorrow onwards, it is going to become zero." He added that tariffs of up to 5 per cent on pharmaceuticals, agricultural and marine products, plastics, chemicals and electrical goods would also be eliminated. The removal of duties is expected to improve the competitiveness of Indian products in New Zealand by reducing their import costs and providing exporters greater opportunities to expand their presence in the market. Kumar also expressed confidence that the agreement would strengthen India's trade position with New Zealand. "With this free trade agreement, the trade surplus is going to be further increased... The ties between India and New Zealand are going to be enhanced," he said. According to the Ministry of Commerce and Industry, bilateral merchandise trade between India and New Zealand reached USD 1.3 billion in 2024-25, registering a 49 per cent increase over the previous financial year. India's merchandise exports to New Zealand stood at USD 711 million during the period. The agreement was signed on April 27, 2026, in New Delhi by Union Commerce and Industry Minister Piyush Goyal and New Zealand's Minister for Trade and Investment Todd McClay. While New Zealand will eliminate tariffs on all its tariff lines from the first day, India has offered tariff liberalisation on around 70 per cent of its tariff lines, retaining protections for sensitive sectors, including dairy and certain agricultural products. The agreement is expected to strengthen bilateral trade and investment ties while opening new opportunities for Indian exporters, particularly small businesses and labour-intensive industries. (ANI)
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