India-New Zealand Free Trade Agreement May Come Into Effect Next Month

The free trade agreement between India and New Zealand is likely to come into effect from next month. Approval from the New Zealand Parliament and India's Cabinet is still pending. The agreement also includes a commitment of $20 billion investment in India over the next 15 years.

Both countries signed this agreement on April 27. Under this, New Zealand will provide Indian exporters duty-free access on 100% of products. This will eliminate duties of up to 10% on major Indian products like ceramics, carpets, automobiles, and auto components.

New Zealand introduced a bill in Parliament in June to implement this law, which is now with a select committee. The committee will prepare a report for the house, after which the bill will be passed.

The agreement also includes a provision that if New Zealand does not fulfill its investment commitments, some benefits granted to it will be withdrawn.

Meanwhile, bilateral trade talks between India and the US are likely during the G20 trade ministers' meeting in Wisconsin from September 30 to October 1. A bilateral meeting on trade may also take place with China after the BRICS summit in New Delhi on September 12-13.

India aims to complete a free trade agreement with Chile by the end of October. Access to minerals is a key priority in these talks. India is also negotiating an FTA with Peru.

Giving major relief to ration dealers under the National Food Security Act, the central government has prepared a proposal to launch a Reserve Bank of India Central Bank Digital Currency-based system for commission payments. About 543,000 fair price shops operate in the country, distributing ration worth approximately Rs 19,000 crore monthly to 788.5 million beneficiaries. Dealers will now receive about Rs 2,900 crore in commission instantly through e-Rupee.

Additionally, Hindustan Zinc Limited has received a mining lease for a rare mineral block in Karnataka. These minerals are useful in smartphones and electric vehicles.

The vehicle manufacturers' organization SIAM has elected Ashok Leyland's Managing Director and CEO Shenu Agrawal as president for the year 2026-27. KN Radhakrishnan, director of TVS Motor, has been made vice president.