New Zealand Trade Deal: Big gift for India before PM Modi’s visit, 57% exports will be duty free

Knews Desk- Before Prime Minister Narendra Modi’s visit to New Zealand, big news has come out regarding trade relations between India and New Zealand. New Zealand Prime Minister Christopher Luxon has announced that under the new trade agreement between the two countries, 57 percent of trade will be completely tax free from day one. This decision is being considered an important step in the economic relations between the two countries.

Prime Minister Narendra Modi is scheduled to arrive on a historic state visit to New Zealand on 10 and 11 July. This is the visit of an Indian Prime Minister to New Zealand after almost four decades. At such a time, the announcement of a trade agreement between the two countries is being considered very important strategically and economically.

Relations will strengthen after four decades

The invitation for PM Modi’s visit to New Zealand was given by the Prime Minister there, Christopher Luxon. Expressing enthusiasm about this visit, he said that India is one of the fastest growing economies in the world and a strong partnership with India is essential for New Zealand’s economic development.

Talks were going on for a long time regarding Free Trade Agreement between India and New Zealand. Now with the implementation of this agreement, the business of both the countries is expected to get new momentum.

There will be no tax on 57 percent business

According to the New Zealand government, under the new trade agreement, 57 percent of its exports will get tax-free access to the Indian market from day one. This will help New Zealand businesses easily access India, one of the world’s largest consumer markets.

With the removal of tariffs, New Zealand products will become more competitive in the Indian market. This is expected to increase business as well as have a positive impact on the local industries, local communities and employment opportunities.

Indian exporters will also benefit

This agreement is not only beneficial for New Zealand, but Indian traders and exporters will also benefit from it. Under the agreement, exports from India to New Zealand are also expected to get better access to the market there.

With the reduction or abolition of tariffs, it will be easier for Indian companies to deliver their products to the New Zealand market. Especially the businessmen of agricultural products, textiles, medicines, engineering goods and other sectors can get benefit from this. This agreement is also considered to be a part of India’s strategy to increase economic participation in the Indo-Pacific region. Amidst global trade challenges, it has become important for India to access new and promising markets.

Important meeting will be held in Auckland

Prime Minister Modi will reach Auckland, New Zealand during his two-day visit. Here he will meet Prime Minister Christopher Luxon. Apart from trade, issues like defence, investment, technology and strategic cooperation are likely to be discussed between the two leaders. PM Modi will also meet leading New Zealand businessmen and prominent personalities from various fields. Apart from this, a program to address the people of the Indian community is also proposed.

Relations between India and New Zealand are not limited to trade only. Education, culture and people-to-people contacts between the two countries have also been strong for a long time. In such a situation, this tour is being considered to give a new direction to the relations between the two countries. The trade agreement and Prime Minister Modi’s visit are expected to open a new chapter of economic cooperation in India-New Zealand relations.