India-New Zealand FTA Will Boost Opportunities for MSMEs
The Federation of Indian Export Organisations (FIEO) announced that the Free Trade Agreement (FTA) between India and New Zealand represents a significant advancement in enhancing India's global trade engagement and increasing its export activities.
According to S C Ralhan, President of FIEO, the agreement is set to expand market opportunities for Indian exporters across various sectors, including agriculture, textiles, pharmaceuticals, and engineering goods, as well as services such as IT and IT-enabled services, business services, engineering, education, construction, and healthcare.
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He further mentioned that the reduction in tariffs and the simplification of procedures will bolster the competitiveness of Indian enterprises within the New Zealand market. FIEO President S C Ralhan articulated that the Free Trade Agreement is poised to unlock novel bilateral trade opportunities for Indian exporters within various sectors, including agriculture, textiles, and pharmaceuticals.
Additionally, it will benefit segments like engineering goods and encompass services such as information technology and IT-enabled services, business solutions, engineering, education, construction, and healthcare services. It offers substantial opportunities for our exporters, especially those within the MSME sector, to access a lucrative market characterized by an increasing demand for high-quality goods and services, he mentioned.
Industries including processed foods, dairy substitutes, and organic goods may experience substantial expansion within the framework of the Free Trade Agreement.
The establishment of a Mutual Recognition Arrangement for Organic Certification will streamline market access, and it will also enable AYUSH products to enter the market for the first time.
Moreover, the services industry is expected to gain advantages from improved mobility arrangements and the mutual acknowledgment of professional credentials. Ralhan further indicated that Indian enterprises will benefit from heightened competitiveness in the New Zealand marketplace due to diminished tariff barriers and more efficient trade processes.
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This will broaden the range of countries to which India exports its goods, thereby diminishing heavy reliance on conventional markets. Exporters should take an active role in adjusting their product standards and marketing tactics to fully exploit the opportunities presented by this agreement, he further remarked.
Mohit Singla, the Chairman of TPCI, expressed that the accord is anticipated to considerably improve market penetration for Indian agricultural and food products, encompassing processed foods, beverages, spices, and marine products, through the reduction of tariffs and the facilitation of overcoming non-tariff barriers.
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Singla highlighted that New Zealand's proficiency in food safety, traceability, and sustainable practices can enhance India's expanding capabilities, allowing our exporters to seamlessly integrate into global value chains. New Zealand exporters stand to gain from India's preferential tariff rates on items such as sheep meat, select fruits, manuka honey, and premium beverages. Tariff concessions for products like kiwi fruits, apples, manuka honey, and albumins are applicable to a specified quota (TRQ).