New Zealand has committed to invest $20 billion in India over the next 15 years under the free trade agreement between the two countries, an official statement said on Monday.
The commitment is in line with a similar trade pact that India implemented with the four-nation European bloc EFTA (European Free Trade Association) in October this year. Under that agreement, EFTA has committed to invest $100 billion in 15 years.
Commerce minister Piyush Goyal said the $20 billion foreign direct investment (FDI) commitment is backed by a rebalancing mechanism to suspend benefits if it is not fulfilled. He also said that this will include only FDI and not FPI/FIIs (foreign portfolio or institutional investors).
“We will get a long term sustainable capital. FPI and FIIs are not included in the investment commitment,” he told reporters here.
India’s chief negotiator and joint secretary in the ministry Petal Dhillon said that investments can come in areas such as manufacturing and infrastructure.
“₹1.80 lakh crore commitment from a country which has invested small amounts of FDI into India so far is a big gain for India,” Goyal said.
Welcoming the conclusion of talks for a free trade agreement between India and New Zealand, industry on Monday said the proposed pact is expected to boost bilateral trade and investment flows and create new growth avenues for businesses in both nations.
“Ficci welcomes the conclusion of the India-New Zealand Free Trade Agreement, a significant step towards deepening economic engagement with the Indo-Pacific region,” Ficci president Anant Goenka said.
India-New Zealand Free Trade Agreement represents a next-generation deal combining trade liberalisation with talent mobility, investment, and productivity-led cooperation, Ranjeet Mehta, CEO & Secretary-General, PHDCCI, said.
“The Agreement provides policy certainty and lowers input costs for manufacturing, creating a vision for long-term economic resilience,” Mehta said.