New Delhi [India], April 27 (ANI): Industry leaders and trade bodies on Monday welcomed the signing of the India-New Zealand Free Trade Agreement (FTA), calling it a 'significant milestone' that is expected to boost exports, attract investments, and deepen economic ties between the two countries.

The Confederation of Indian Industry (CII) said the agreement is a 'forward-looking step' that will shape the next phase of bilateral engagement. 'Anchored in shared priorities of trade diversification, innovation, and sustainability, the agreement lays a strong foundation for a more dynamic, resilient, and future-ready partnership,' the industry body said.

Highlighting the trade benefits, CII noted that 'the FTA's provision of 100% duty-free access for Indian exports is expected to unlock significant opportunities for trade expansion in the coming years,' adding that sectors such as transport, pharmaceuticals, machinery, and electronics are likely to scale up exports.

The agreement aims to double bilateral trade to USD 5 billion over the next five years, signalling 'strong growth potential and renewed momentum in economic ties,' it added.

CII Director General Chandrajit Banerjee said, 'The FTA marks a significant milestone for Indian industry and will substantially enhance the competitiveness of Indian exports... it unlocks new avenues for scale, market diversification, and sustained export growth.'

Reacting to the pact, Agneshwar Sen, Trade Policy Leader at EY India, said the agreement is a 'significant win for India.' He added, 'New Zealand's offer to eliminate duties on 100% of its tariff lines... means Indian goods in textiles, apparel, leather, pharmaceuticals, machinery, and auto components enter New Zealand duty-free.'

He further highlighted that India has safeguarded sensitive sectors. 'Dairy, edible oils, sugar, spices, onions, and key agricultural commodities are explicitly excluded from India's concession list, protecting domestic farmers and industry,' Sen said.

On services and mobility, Sen noted that the agreement 'opens mobility pathways for Indian professionals in IT, healthcare, engineering, and education,' while also supporting India's ambition to become a global food processing hub.

Corporate leaders also flagged new business opportunities. Dr Anish Shah, Group CEO and MD of Mahindra Group, said, 'The India-New Zealand FTA... creates new opportunities across farm solutions, mobility, technology, and hospitality, while enabling innovation and more resilient supply chains.'

Meanwhile, Anant Swaroop, Secretary General of FICCI, called it a 'historic occasion,' stating, 'It could open new doors for Indian exporters... AYUSH has also been recognised as a system of wellness for the first time. That would also promote India's soft power to the rest of the world.'

Industry experts also highlighted the investment dimension of the agreement. CII pointed out that New Zealand's commitment to facilitate USD 20 billion in investment over 15 years could 'catalyze the development of industrial infrastructure, manufacturing ecosystems, and innovation clusters across India.'

The FTA is also expected to boost collaboration in emerging sectors. According to CII, 'the agreement opens up promising avenues for future collaboration across high-growth sectors such as advanced manufacturing, agritech, digital technologies, and pharmaceuticals.'

India and New Zealand signed the Free Trade Agreement (FTA) on Monday, marking a significant step in strengthening bilateral economic ties, with the pact expected to bring deep tariff cuts, expanded market access and enhanced services cooperation.

The deal signed between India's Commerce and Industry minister Piyush Goyal and New Zealand, Minister for Trade and Investment Todd McKlay is being described as one of India's fastest concluded bilateral trade deals. (ANI)