As global trade dynamics continue to evolve, India is accelerating its efforts to establish stronger economic ties through free trade agreements with several countries. A significant milestone in this pursuit is the impending activation of the Free Trade Agreement (FTA) with New Zealand, set to come into force on October 20. This agreement, announced by India’s Commerce and Industry Minister Piyush Goyal, promises to enhance bilateral trade by granting duty-free access to New Zealand for 100% of Indian exports from the outset.
Signed in April, the India-New Zealand FTA is not just about enhancing trade but also aims to boost investment flows. The agreement includes a commitment from New Zealand to facilitate $20 billion in investments into India over the next 15 years. However, to safeguard domestic agricultural interests, India has strategically excluded several sensitive products, such as onions, chickpeas, peas, corn, almonds, and sugar, from the duty-free list.
Beyond the deal with New Zealand, India is actively negotiating trade agreements with other global partners. Talks with the European Union, Canada, and Chile are currently in various stages of progression. Notably, the negotiations with Canada are poised to enter their fifth round this October, with both nations striving for a comprehensive economic partnership.
Discussions with Chile are also gaining momentum, while Goyal has expressed optimism about advancing the trade agreement with the European Union before the year’s end. These efforts underscore India’s strategic push to bolster its global trade footprint amidst an increasingly interconnected world economy.