NEW DELHI. The India-New Zealand FTA will allow New Zealand companies to process dairy inputs within India specifically for re-export to third countries. Union Commerce and Industry Minister Piyush Goyal announced this strategic provision on Monday following the conclusion of bilateral talks. This arrangement ensures that New Zealand’s dairy expertise benefits India’s export economy without hurting domestic producers. Both nations aim to elevate their economic partnership to a higher strategic level through this Comprehensive Economic Partnership Agreement.
Safeguarding Farmers via India-New Zealand FTA
Minister Goyal explicitly clarified that the agreement includes robust safeguards for India’s sensitive dairy sector. The government will not allow New Zealand dairy products to flood the local market or compete with Indian farmers. Instead, the focus remains on “value addition” within Indian borders. New Zealand firms will bring high-quality inputs, process them using local labor and infrastructure, and then ship the final products to international markets.
Furthermore, this model transforms India into a global processing hub. It creates jobs in the food processing industry and improves technical standards across the supply chain. The Minister noted that this “win-win” solution addresses the concerns of the Indian dairy industry while satisfying New Zealand’s export ambitions.
Broadening Trade and Student Visas
The agreement extends far beyond the dairy sector to include textiles, pharma, and services. Minister Goyal highlighted that the pact is “comprehensive and forward-looking.” One of the most significant non-trade wins involves the movement of professionals and students.
Additionally, New Zealand has agreed to provide multi-year work visas for Indian students. This move will significantly benefit the Indian diaspora and strengthen people-to-people ties. Prime Minister Narendra Modi and New Zealand PM Christopher Luxon previously hailed the deal as a landmark development for the Indo-Pacific region.
The India-New Zealand FTA also paves the way for deeper cooperation in high-tech manufacturing and green energy. By aligning India’s manufacturing scale with New Zealand’s innovation, both countries expect bilateral trade to double within the next five years.
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