The recently concluded Free Trade Agreement (FTA) between India and New Zealand is expected to unlock fresh opportunities for Indian exporters, significantly boost bilateral trade, and strengthen investment flows between the two countries, according to former Chief Commissioner of Income Tax Dr Shikha Darbari.

Speaking to IANS, Dr Darbari said the reduction of tariffs under the agreement would make Indian products more competitive in the New Zealand market, increasing demand across a wide range of sectors. She identified textiles, marine products, engineering goods, and micro, small and medium enterprises (MSMEs) as key beneficiaries of the pact.

“With lower tariffs and improved market access, Indian exporters will be able to expand their footprint in New Zealand. This will not only increase exports but also create employment opportunities across multiple sectors,” she said, adding that the agreement would give a positive push to the domestic economy.

The long-term trade pact, valued at approximately $20 billion, aims to double bilateral trade between India and New Zealand over the next five years. Dr Darbari described the agreement as a reflection of Prime Minister Narendra Modi’s broader global economic vision and the growing confidence of international partners in India’s economic stability and growth potential.

She noted that India had earlier approached free trade agreements with caution, prioritising the protection of domestic industries. However, she said the current strategy reflects a shift towards balanced and secure trade partnerships with developed economies.

“India is now entering FTAs that are carefully structured to safeguard investor interests while opening up new opportunities for exports. This demonstrates the evolution of India’s trade diplomacy and its ambition to emerge as a major global trading power,” Dr Darbari explained.

According to her, the India–New Zealand FTA represents an important step towards positioning India as a leader in global trade. She linked the agreement to the government’s long-term development roadmap under the ‘Viksit Bharat 2047’ vision, which seeks to transform India into a developed economy by the centenary of Independence.

“Opening new markets and strengthening foreign trade agreements are essential to expanding India’s trade footprint. This agreement will help reinforce India’s economic strength and enhance its influence in global commerce,” she said.

Dr Darbari also highlighted the potential benefits for India’s agricultural sector. She said the FTA would promote exports of GI-tagged Indian products and value-added agricultural goods, allowing farmers to secure better prices for their produce and improve their financial stability.

She added that the government is encouraging farmers and producers to obtain indigenous patents and geographical indication (GI) tags to enhance competitiveness in international markets. This focus on branding and value addition, she said, would help Indian agricultural products gain wider recognition abroad.

Overall, the India–New Zealand FTA is being viewed as a strategic agreement that balances economic growth with long-term sustainability. By expanding export opportunities, generating employment, and deepening trade ties with a developed economy, the pact is expected to play a key role in strengthening India’s position in the global trading system.