Govt signs FTA with New Zealand, steel sector to benefit

India and New Zealand have signed a free trade agreement (FTA), reducing tariffs on a wide range of goods, including iron, steel and raw materials used in steel production.

Under the agreement, tariffs will be cut or eliminated on around 95pct of New Zealand's exports to India, including coking coal, steel and scrap.

The deal is expected to support the Indian steel sector by lowering input costs, particularly through the removal of import duties on coking coal and steel scrap, while also improving export competitiveness.

Two-way trade between the countries stands at around USD 2.4 bln, including USD 1.3 bln in merchandise trade, with India maintaining a marginal trade surplus.