Date: 2026-04-26Category: Press ReleaseState: Union GovernmentCountry: India
Union Minister for Commerce and Industry Shri Piyush Goyal and New Zealand Minister for Trade and Investment Mr. Todd McClay Lead Industry Engagement in Agra Ahead of India–New Zealand FTA Signing
**Executive Summary**
On April 26, 2026, Union Ministers from India and New Zealand led an industry engagement in Agra ahead of the signing of a comprehensive Free Trade Agreement (FTA). The agreement establishes a framework beyond tariff reductions, focusing on trade, investment, talent mobility, and sector-specific growth in leather, pharma, and AYUSH. Key objectives include eliminating duties on Indian exports and positioning Agra as a global sourcing hub to drive the leather sector toward a USD 50 billion valuation by 2030.
**Key Points / Main Content**
**Scope of the Agreement**
* The FTA is a comprehensive partnership covering market access, agricultural productivity, investment, talent mobility, and people-to-people ties.
* The agreement was concluded in a record nine months following its launch on March 16, 2025.
* It is designed to benefit diverse groups, including manufacturers, farmers, MSMEs, women entrepreneurs, and students.
**Leather and Footwear Sector**
* The FTA eliminates duties on 100% of Indian exports upon entry into force.
* Tariffs on leather and footwear will be reduced from 5% to zero, providing Indian exporters a competitive advantage.
* The sector aims to transition from mass production to high-value-added manufacturing, leveraging New Zealand’s raw leather resources.
**Pharmaceuticals and Medical Devices**
* Provisions include faster regulatory access and reduced compliance burdens for Indian manufacturers.
* The agreement mandates the acceptance of Good Manufacturing Practice (GMP) and Good Clinical Practice (GCP) inspection reports from comparable international regulators.
* A dedicated chapter on Health and Traditional Medicine has been included to recognize and boost the AYUSH sector.
**Education and Talent Mobility**
* The framework creates new pathways for Indian students and skilled professionals to explore opportunities in New Zealand.
* The agreement emphasizes a "people-centred partnership" through enhanced cross-sector opportunities.
**Impact Analysis**
**Indian Leather and Footwear Manufacturers**
**Impact**
Manufacturers gain a decisive competitive advantage through zero-tariff access and the ability to source high-quality raw materials from New Zealand.
**Action Required**
Industry must shift focus from mass production to high-value-added manufacturing to reach the USD 50 billion growth target by 2030.
**Pharmaceutical and Medical Device Companies**
**Impact**
Companies will benefit from expedited product approvals and lower compliance costs due to the recognition of international inspection reports.
**Action Required**
Businesses should streamline their regulatory filings to take advantage of the faster access provisions under the FTA.
**MSMEs and Small Enterprises**
**Impact**
The FTA is structured to ensure that trade benefits extend to small-scale enterprises and MSMEs across both nations.
**Action Required**
Industry bodies must actively work to ensure the benefits of the agreement reach the MSME level.
**Students and Skilled Professionals**
**Impact**
Stakeholders in this group gain improved talent mobility and new educational pathways between India and New Zealand.
**Action Required**
Individuals and educational institutions should actively leverage the talent mobility provisions to explore new professional and academic opportunities.
**New Zealand Businesses**
**Impact**
New Zealand identifies India as a strategic priority with significant investment opportunities in a growing economy.
**Action Required**
Businesses are encouraged to actively pursue joint ventures with Indian counterparts to harness the complementarity of both markets.
Key Entities Referenced
India–New Zealand Free Trade Agreement (FTA): A comprehensive partnership framework covering trade, investment, mobility, and sector-specific provisions like a dedicated chapter on AYUSH.
Shri Piyush Goyal: Union Minister for Commerce and Industry, India, who led the industry engagement and the signing of the FTA.
Mr. Todd McClay: New Zealand's Minister for Trade and Investment, key negotiator and representative for the bilateral agreement.
One District One Product (ODOP) scheme: A government initiative under which Agra’s leather footwear is a flagship product, now benefiting from zero-tariff exports under the FTA.
Agra, Uttar Pradesh: A central location for India's leather footwear production and the site of the high-level Industry Engagement Programme.
Ministry of Commerce & Industry
Union Minister for Commerce and Industry Shri
Piyush Goyal and New Zealand Minister for Trade
and Investment Mr. Todd McClay Lead Industry
Engagement in Agra Ahead of India–New
Zealand FTA Signing
India–New Zealand FTA Positioned as Comprehensive
Partnership Beyond Tariffs Covering Trade, Mobility,
Investment and People-to-People Ties
Agra Leather Sector Eyes USD 50 Billion Growth by 2030 as
India–New Zealand Synergy Drives High-Value Manufacturing
and Global Sourcing Ambitions
Industry Welcomes India–New Zealand FTA Provisions on
Pharma, Medical Devices; Faster Regulatory Access and
Dedicated AYUSH Chapter to Boost Sector Growth
Shri Piyush Goyal Urges Industry to Leverage Education,
Talent Mobility and Cross-Sector Opportunities Under India–
New Zealand FTA
Posted On: 26 APR 2026 7:31PM by PIB Delhi
On the eve of the signing of the India-New Zealand Free Trade Agreement (FTA), Union Minister for
Commerce and Industry, Shri Piyush Goyal, and Mr. Todd McClay, Minister for Trade and Investment,
New Zealand, participated in an Industry Engagement Programme at Agra. MoS of Fisheries, Animal
Husbandry and Dairying Shri S P Baghel, also participated in the interaction. The interaction brought
together leading industry representatives from the leather and footwear, AYUSH, medical devices, light
engineering, sports goods sectors and Laghu Udyog Bharati, Uttar Pradesh. The industry presented their
views reflecting the depth and diversity of India's leather manufacturing prowess, Pharma industry,
medical devices industry, engineering products.
In keeping with Prime Minister Shri Narendra Modi's vision of building trade partnerships that are
inclusive, forward-looking, and firmly rooted in India's national priorities, both Ministers underscored that
the India-New Zealand FTA is far more than a tariff agreement. It is a comprehensive frameworkencompassing market access, agricultural productivity, investment, talent mobility, collaboration in sports,
tourism, and people-to-people ties, designed to benefit manufacturers, farmers, MSMEs, women
entrepreneurs, students, and skilled professionals across both nations.
Agra, which accounts for approximately 75 per cent of India's leather footwear production, holds a
Geographical Indication (GI) tag for its leather footwear and is a flagship product under the One District
One Product scheme. With the FTA eliminating duties on 100 per cent of Indian exports from Entry into
Force, and bringing tariffs on leather and footwear from 5 per cent to zero, Indian exporters are set to gain
a decisive competitive advantage. Industry representatives highlighted the sector's potential to grow to
USD 50 billion by 2030, driven by a strategic shift from mass production to high value-added
manufacturing. New Zealand's rich raw leather resources, combined with India's manufacturing
capabilities, offer a strong complementarity that both sides expressed keenness to harness. On the
occasion, Both Ministers along with Industry representatives spoke of positioning Agra as a global
sourcing destination, an employment engine, and an export powerhouse on the world stage.
The interaction also covered the pharmaceutical and medical devices sectors. Industry representatives
welcomed the FTA's provisions for faster regulatory access, including acceptance of GMP and GCP
inspection reports from comparable international regulators, which will reduce compliance burdens and
expedite product approvals for Indian manufacturers. They welcomed the inclusion of a dedicated chapter
on Health and Traditional Medicine in the FTA, a first for both the countries recognising AYUSH.
Shri Piyush Goyal also touched upon the significant opportunities the Agreement creates in education and
talent mobility. The Minister urged industry and stakeholders to actively leverage these provisions,
encouraging Indian students and professionals to explore the new pathways the FTA opens, and called
upon all to view this Agreement as a gateway to a deeper, people-centred partnership between the two
nations.
Addressing the gathering, Shri Goyal described the FTA as an opening of both doors and minds, and urged
industry to think beyond the ordinary and leverage the full breadth of the Agreement across sectors
including pharma, AYUSH, education, sports, tourism and investment. He called upon industry bodies to
ensure that its benefits reach every MSME and small enterprise. Mr. Todd McClay reaffirmed that India is
a strategic priority for New Zealand and described this as the highest quality FTA New Zealand has
concluded. He encouraged businesses on both sides to actively pursue joint ventures, and highlighted
significant investment opportunities that New Zealand businesses see in India's growing economy.
The Industry Engagement Programme at Agra is part of a series of high-level interactions accompanying
the landmark signing of the India-New Zealand FTA in New Delhi, concluded in a record nine months
since its launch on 16 March 2025, marking a new chapter in bilateral economic relations.
***
Abhishek Dayal/ Ishita Biswas
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