New Delhi, April 27 (IANS). The Free Trade Agreement (FTA) between India and New Zealand has been strongly welcomed by the industry. The Confederation of Indian Industry (CII) has described it as an important step taken keeping the future in mind, giving new heights to the economic relations between the two countries. The agreement is based on shared goals such as trade diversification, innovation and sustainable development, laying the foundation for a strong and sustainable partnership.
CII said on Monday that a special feature of this agreement is that investment has also been linked with trade in it. New Zealand has committed to encourage investment of up to $20 billion in India over the next 15 years. This will accelerate the development of industrial infrastructure, manufacturing ecosystem and innovation hubs in India. This model will promote overall development by linking together trade, investment and employment creation.
Welcoming the India-New Zealand Free Trade Agreement (FTA), the top industry chamber said that 100 per cent duty-free access to Indian exports under this FTA could see a huge expansion in trade in the coming years.
This will position key sectors like transport and automobile, pharmaceuticals, plastics and rubber, electrical and electronic equipment and machinery to increase their exports and strengthen competitiveness in the global market.
The agreement aims to increase bilateral trade to $5 billion over the next five years, indicating growing economic cooperation between the two countries.
This agreement opens up new opportunities for cooperation in fast-growing sectors such as advanced manufacturing, agritech, food processing, digital technology and pharmaceuticals. New Zealand’s innovation capability combined with India’s vast potential and digital strength can create globally competitive industries. Additionally, partnership in green and sustainable manufacturing will also help in achieving climate goals.
CII Director General Chandrajit Banerjee congratulated the Government of India for this historic agreement and said that it will take India-New Zealand trade to new heights. He said that this FTA will prove to be a major milestone for Indian industry and will significantly improve the competitiveness of exports.
He further said that the elimination of tariffs in sectors like textiles, leather, ceramics and auto components will provide opportunities for expansion into new markets and sustained export growth. Along with this, this agreement will help in increasing productivity, reducing business costs and providing strong support to the MSME sector.
This agreement will strengthen India’s long-term economic strength while promoting innovation, attracting investment and strengthening global networks.
Banerjee further expressed hope that the full potential of this agreement will be harnessed by working together with stakeholders from both countries and this strategic partnership will be further strengthened in the future.
–IANS
DBP
