India-New Zealand FTA offers duty-free access to 100% of New Zealand’s tariff lines
GS2Polity · Governance · IR· India's bilateral relations· Prelims + Mains·
Trade Liberalization and FDI: a GS2 case study on bilateral economic cooperation and human mobility.
Why in news
India and New Zealand enacted a Free Trade Agreement (FTA) providing India with 100% duty-free access to New Zealand's tariff lines.
Background
The FTA includes a commitment to increase New Zealand's FDI in India by USD 20 billion within 15 years. It introduces new visa categories for 5,000 workers and a working holiday scheme for 1,000 nationals aged 18 to 30.
Facts for Prelims
- FactIndia granted 100% duty-free access to all of New Zealand's tariff lines under the new FTA.
- FactThe agreement aims to increase New Zealand's FDI in India by USD 20 billion over a 15-year period.
- FactThe working holiday scheme under the FTA is available to 1,000 nationals aged 18 to 30.
- FactDuties on Indian pharmaceuticals, agriculture, allied services, marine products, and chemicals fell from 5% to zero.
- FactThe India-New Zealand FTA is the seventh such agreement India has signed in the last five years.
Prelims practice question
Under the India-New Zealand FTA, what is the target amount for New Zealand's Foreign Direct Investment (FDI) in India over a 15-year period?
- (a)USD 10 billion
- (b)USD 100 billion
- (c)USD 20 billion
- (d)USD 50 billion
Show answer
Answer: (c) USD 20 billion — The agreement includes a commitment to increase New Zealand's FDI in India by USD 20 billion within 15 years.
For Mains
Q. Examine how comprehensive Free Trade Agreements (FTAs) can serve as catalysts for both bilateral trade expansion and targeted Foreign Direct Investment (FDI) inflows.
Dimensions to cover in your answer
- Trade Liberalization: Elimination of 10% tariffs on Indian textiles, leather, and electronics to enhance export competitiveness.
- Investment Framework: Time-bound commitment of USD 20 billion FDI to bolster capital infusion into Indian industries.
- Labor Mobility: Integration of specific visa categories and working holiday schemes to facilitate human capital exchange.
Keywords: Trade Liberalization · Foreign Direct Investment · Tariff Elimination · Bilateral Trade · Economic Cooperation · Human Mobility
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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.