India and New Zealand on Monday signed Free Trade Agreement (FTA) in New Delhi, granting 100 percent duty-free access for all Indian exports to New Zealand, covering all tariff lines and will significantly boost MSMEs and employment.The agreement, which was signed by Union Minister of Commerce and Industry Piyush Goyal and New Zealand’s Minister for Trade and Investment Todd McClay, includes a commitment of facilitating USD 20 billion in investment into India, strengthening long-term economic cooperation and supporting the country’s growth.With zero-duty market access from entry into force as New Zealand’s other trade partners, Indian products will be fully competitive in New Zealand enjoying a level playing field, which will directly support workers, artisans, women entrepreneurs, youth, and MSMEs across India.The deal is expected to enhance competitiveness in labour-intensive sectors such as textiles, apparel, leather, footwear, gems and jewellery, engineering goods, and processed foods.Furthermore, India also secures duty-free inputs for its manufacturing sector, including wooden logs, coking coal, and waste and scraps of metals, lowering production costs and enhancing the global competitiveness of Indian industry.As part of the FTA, India has offered tariff liberalisation on 70.03 percent of tariff lines covering 95 percent of bilateral trade value, while keeping 29.97 percent of tariff lines in exclusion to protect country’s sensitive sectors.With this, 30 percent of tariff lines will have immediate duty elimination, covering wood, wool, sheep meat, leather-raw hides etc. About 35.60 percent of tariffs are subject to phased elimination over 3, 5, 7, and 10 years, including petroleum oil, malt extract, vegetable oils, and selected electrical and mechanical machinery, peptones etc.Also, 4.37 percent of products face tariff reductions such as wine, pharmaceutical drugs, polymers, aluminum, iron and steel articles etc. And, 0.06 percent fall under tariff rate quotas, including Mānuka honey, apples, kiwi fruit, and albumins including milk albumin.Meanwhile, the products that are kept in exclusion are mainly dairy (milk, cream, whey, yoghurt, cheese etc.), animal products (other than sheep meat), agricultural products (onions, chana, peas, corn, almonds etc.), sugar, artificial honey, animal, vegetable or microbial fats and oils, among othersPM Modi says the FTA will strengthen economic ties between India-NZPM Modi said the India-New Zealand FTA marks a major milestone towards deeper global engagement and shared prosperity. It strengthens economic ties between two vibrant democracies, unlocking opportunities for farmers, artisans, youth, entrepreneurs, women and MSMEs. It will create opportunities for farmers, youth, MSMEs and entrepreneurs.