Agra, a major hub for India's leather footwear production, hosted a crucial industry outreach event today, setting the stage for the formal signing of the comprehensive Free Trade Agreement (FTA) between India and New Zealand. Union Commerce and Industry Minister Piyush Goyal and New Zealand’s Trade and Investment Minister Todd McClay led discussions, emphasizing the agreement’s broad economic scope.
The comprehensive Free Trade Agreement (FTA) is slated for formal signing on April 27, 2026, in New Delhi. This landmark pact, concluded in just nine months, aims to double bilateral trade to $5 billion within five years.
Leather Sector Eyes $50 Billion Opportunity
The leather and footwear industry was a key focus, with Agra accounting for nearly 75% of India’s leather footwear output. Under the new FTA, 100% of Indian exports to New Zealand will receive duty-free access, with tariffs on leather and footwear specifically dropping from 5% to zero. This significant reduction is expected to provide Indian exporters a substantial competitive edge.
Industry leaders project the leather sector could grow to $50 billion by 2030, driven by a strategic shift towards high-value manufacturing and increased global sourcing. The agreement highlights the synergy between New Zealand’s raw material base and India’s robust manufacturing capabilities.
Broader Economic Partnership and Regulatory Boosts
Beyond tariff reductions, the India-New Zealand FTA encompasses enhanced market access, agricultural productivity, talent mobility, tourism, and extensive cross-sector collaboration. Officials underscored its potential to support micro, small, and medium enterprises (MSMEs), farmers, women entrepreneurs, and skilled professionals across both nations.
The agreement also includes significant provisions for pharmaceuticals and medical devices, promising faster regulatory approvals through the acceptance of Good Manufacturing Practice (GMP) and Good Clinical Practice (GCP) inspection reports. This is anticipated to streamline compliance and accelerate product accessibility.
A groundbreaking aspect of the FTA is a dedicated Health and Traditional Medicine chapter, which officially recognizes AYUSH systems – a first for both India and New Zealand. Minister Goyal also highlighted new opportunities in education and talent mobility, urging industries to leverage these pathways for students and professionals.
New Zealand's Minister McClay affirmed India as a strategic priority, describing the FTA as one of the highest quality agreements his country has concluded. He encouraged businesses to explore joint ventures and investment opportunities within India’s burgeoning economy, reflecting a shared vision for deeper economic ties.