December 24, 2025
Daily Current Affairs for UPSC : 24 Dec 2025/India- New Zealand Trade talks
- New Delhi hopes to double bilateral trade to $5 billion, and bring in $20 billion in investments
- New Zealand will provide 5,000 employment visas annually and a stay of up to three years
- The trade pact will help Indian exporters, who are reeling under 50% tariffs imposed by U.S.
- India and New Zealand on Monday concluded discussions on a free trade agreement (FTA) that will give India tariff-free access to the island nation’s markets, bring in $20 billion in investments over 15 years, and help double bilateral trade to $5 billion in the next five years.
- The deal will remove or cut tariffs on 95% of New Zealand’s exports — from timber to fruits — to India, but New Delhi safeguarded the interests of its agricultural and dairy farmers, considered politically sensitive, and made no concessions on import of dairy, onions, sugar, spices, edible oils, and rubber. New Zealand will give temporary employment visas for Indian professionals in skilled jobs with a quota of 5,000 visas annually and a stay of up to three years.
- Union Minister for Commerce Piyush Goyal said the government has been “sensitive in protecting interests” of agricultural and dairy farmers. “Rice, wheat, dairy, soya and various other agricultural products have not been opened up with any access,” he said.
- Hailing the FTA, to be signed in the first half of 2026, Prime Minister Narendra Modi said, “Concluded in just nine months, this historic milestone reflects a strong political will and shared ambition to deepen economic ties between our two countries.”
‘FTA will boost ties’:
- Mr. Modi spoke to his New Zealand counterpart Christopher Luxon over the phone before jointly announcing the conclusion of the FTA,said an official statement.
- “The FTA would significantly deepen bilateral economic engagement, enhance market access, promote investment flows, strengthen strategic cooperation between the two countries, and also open up new opportunities for innovators, entrepreneurs, farmers, MSMEs, students and youths of both countries across various sectors,” the External Affairs Ministry said.
- The pact will help Indian exporters, reeling under the impact of 50% tariffs imposed by the Trump administration on Indian goods, diversify shipments in the Oceania region. India has already implemented a trade pact with Australia.
- Underlining this, Mr. Goyal said the deal will give “opportunities for all sections of our export communities” and exporters wishing to “diversify their export basket”. Speaking at a press conference, he said that India has been “very cautious of ensuring that our micro, medium and small enterprises, innovators and start-ups get big opportunities in New Zealand.”
- The Minister said the agreement will provide a fillip to labour-intensive sectors such as apparel, leather, textiles, rubber, footwear and home decor. It will encourage export of automobiles, auto components, machinery, electronic goods and electrical and pharmaceuticals, he said.
- The temporary employment visas cover AYUSH practitioners, yoga instructors, Indian chefs, and music teachers, as well as high-demand sectors including IT, engineering, healthcare, education, and construction, strengthening workforce mobility and services trade.
- For New Zealand, Mr. Luxon said “the gains are wide-ranging and significant”. “India is the world’s most populous country and is the fastest-growing big economy, and that creates opportunities for jobs for Kiwis, exports and growth,” he said.
- Products not covered:
- Under the pact, New Zealand will get duty-free access to goods such as sheep meat, wool, coal and over 95% of forestry and wood articles. It will get duty concessions on a number of other items such as kiwi fruit, wine, some seafood, cherries, avocados, persimmons, bulk infant formula, Manuka honey and milk albumins.
- But the deal does not cover vegetable products (onions, chana, peas, corn, almonds), sugar, artificial honey, animal, vegetable or microbial fats and oils, arms and ammunition, gems and jewellery, copper and its products, and aluminium and articles.
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