New Delhi, Dec 23 — Placing agricultural productivity and farmer incomes at the centre of bilateral cooperation, India and New Zealand on Monday announced the conclusion of a landmark Free Trade Agreement (FTA) that establishes dedicated Agri-Technology Partnerships for apples, kiwifruit and honey, while safeguarding Indian farmers through calibrated market access restrictions.
The agreement, one of India’s fastest-concluded FTAs with a developed country, aligns agricultural cooperation with technology transfer, research collaboration and income enhancement, even as sensitive farm sectors such as dairy, sugar, edible oils, spices and onions remain fully protected from tariff liberalisation.
Centres of Excellence for Apples, Kiwifruit and Honey
A key pillar of the FTA is the creation of Centres of Excellence and Agri-Technology Action Plans focused on apples, kiwifruit and honey, aimed at improving yields, quality standards, post-harvest management and value-chain efficiency.
The cooperation will include access to improved planting material, capacity building for growers, orchard management techniques, sustainable beekeeping practices, and food safety systems. Officials said the initiative is designed to strengthen domestic capabilities and raise farmer incomes without exposing Indian producers to unfair competition.
Safeguards for Domestic Agriculture
While productivity cooperation is deepened, market access for apples, kiwifruit and honey will be strictly regulated through quotas and minimum import prices, ensuring that knowledge transfer does not undermine local producers.
India has also excluded several sensitive agricultural commodities from tariff concessions, including dairy products, milk and cream, cheese, yoghurt, whey, caseins, coffee, onions, sugar, spices, edible oils and rubber, reflecting a strong protection framework for domestic agriculture and allied sectors.
Zero-Duty Access for Indian Agricultural Exports
New Zealand has agreed to eliminate tariffs on 100 per cent of its tariff lines, granting zero-duty market access to all Indian exports, including agricultural and marine products. This is expected to enhance competitiveness for Indian exporters while expanding opportunities for value-added agri-exports.
India, in turn, has offered tariff liberalisation on around 70 per cent of tariff lines, covering nearly 95 per cent of bilateral trade, while retaining flexibility to protect vulnerable sectors.
Investment and Rural Value Chains
New Zealand has committed to facilitate USD 20 billion in investments over the next 15 years, with agriculture, food processing, logistics and agri-technology expected to be key beneficiaries. Officials said the investment push would strengthen rural value chains and support employment generation.
Broader Trade and Mobility Framework
Beyond agriculture, the FTA provides New Zealand’s best-ever services offer to India, covering 118 services sectors, alongside enhanced mobility for students and professionals, including post-study work visas and dedicated employment quotas.
Commerce and Industry Minister Piyush Goyal said the agreement was designed around people, farmers and productivity, while Commerce Secretary Rajesh Agrawal described it as a “new generation trade agreement” built on tariffs, agricultural productivity, investment and talent.
India–New Zealand bilateral trade in goods and services stood at approximately USD 2.4 billion in 2024, and officials said the FTA provides a stable and predictable framework to unlock its full agricultural and economic potential under the vision of Viksit Bharat 2047.
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