NEW DELHI: The India-New Zealand free trade agreement (FTA) is set to come into force next month, an official said on Thursday, paving the way for greater trade and investment between the two countries.
India and New Zealand had signed the agreement on April 27 with the objective of expanding bilateral trade in goods and services and encouraging investments.
According to the official, the pact will become operational on a mutually agreed date in October.
A key provision of the agreement is New Zealand’s commitment to provide duty-free access to 100 per cent of India’s exports. The move is expected to improve market access for Indian exporters across various sectors.
Before the agreement, New Zealand imposed peak tariffs of up to 10 per cent on several important Indian export items, including ceramics, carpets, automobiles and auto components.
The trade pact also includes a major investment commitment from New Zealand. It has pledged to invest USD 20 billion in India over a period of 15 years.
The implementation of the agreement will mark the next stage in the trade relationship between the two countries after the pact was signed earlier this year.
The FTA is aimed at facilitating two-way commerce in goods and services while creating a framework to promote investments between India and New Zealand.