New Delhi, Dec 23 The India-New Zealand Free Trade Agreement (FTA) will give investors more confidence as both the countries access each other’s market to gain across the spectrum, Ved Jain, economist and former president of the Institute of Chartered Accountants of India (ICAI), said on Tuesday.
“Naturally, when two countries like India and New Zealand enter into a free trade agreement, providing each other with greater access, and the leadership of both countries is committed to economic development, investors gain more confidence. They feel positive about the Indian economy as well as the New Zealand economy,” Jain told IANS.
The FTA eliminates duty on 100 per cent of Indian exports, along with a $20 billion investment commitment over 15 years to strengthen long-term economic and strategic cooperation.
India has offered market access in 70.03 per cent of the tariff lines while keeping 29.97 per cent tariff lines in exclusion. Certain products are kept in exclusion such as Dairy (milk, cream, whey, yoghurt, cheese etc.), animal products (other than sheep meat), vegetable products (onions, chana, peas, corn, almonds etc.), sugar, artificial honey, Animal, vegetable or microbial fats and oils, Arms and Ammunition, Gems and Jewellery, Copper and Articles (Cathodes, Cartridges, Rods, Bars, Coils etc.), Aluminium and articles thereof (Ingots, billets, wire bars), among others.
Former Chief Commissioner of Income Tax, Dr Shikha Darbari, told IANS that reduced tariffs in the New Zealand market will increase demand for Indian products and help domestic industries strengthen their presence globally. “The agreement is also likely to generate employment across these sectors, providing a positive push to the Indian economy,” she noted.
She said that the long-term trade agreement, valued at around $20 billion, aims to double bilateral trade between India and New Zealand over the next five years. “This reflects Prime Minister Narendra Modi’s global economic vision and the growing confidence of international investors in India,” Dr Darbari added.
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