India–New Zealand FTA to Accelerate Leather Sector Growth to Dollar 50 Billion by 2030
New Delhi, Apr 27 (BNP): India’s leather industry is poised for significant expansion, with projections to reach $50 billion by 2030, driven by the recently concluded free trade agreement with New Zealand and a strategic move toward value-added manufacturing.
The Ministry of Commerce and Industry said the agreement will provide a major boost to exports by eliminating tariffs on all Indian goods from the date of implementation. Notably, duties on leather and footwear—earlier pegged at around 5%—will be brought down to zero, enhancing India’s competitiveness in international markets.
Union Commerce and Industry Minister Piyush Goyal and New Zealand’s Trade Minister Todd McClay underscored the strong synergy between the two economies during an industry outreach event in Agra. The partnership is expected to combine New Zealand’s raw material strength with India’s manufacturing scale and expertise.
Agra remains central to this vision, accounting for nearly three-fourths of India’s leather footwear output and holding a Geographical Indication (GI) tag. Policymakers and industry leaders are positioning the city as a global sourcing hub, capable of driving exports and employment generation.
Beyond tariff cuts, the agreement spans a wide range of sectors, including agriculture, pharmaceuticals, medical devices, education, and traditional medicine. Industry participants have welcomed provisions aimed at faster regulatory approvals and reduced compliance burdens, particularly through recognition of global standards.
The pact also places emphasis on talent mobility and deeper people-to-people engagement, opening new opportunities for professionals and students in both countries.
Overall, the India–New Zealand FTA is being viewed as a comprehensive and forward-looking framework that not only strengthens bilateral trade but also supports India’s ambition to move up the global value chain in manufacturing.
