New Delhi, Dec 23 (UNI) The recently signed India-New Zealand Free Trade Agreement (FTA) is set to facilitate increased bilateral investment, institutional presence, and services delivery, the Ministry of Finance said on Tuesday.
At present, two Indian banks, namely, Bank of Baroda and Bank of India, maintain subsidiary operations in New Zealand with a combined total of four branches, while New Zealand currently has no banking or insurance presence in India, and no Indian insurance companies have established operations in New Zealand.
This FTA, by establishing clear market access commitments, regulatory transparency, and bilateral cooperation frameworks, will facilitate increased bilateral investment, institutional presence, and service delivery, the ministry said.
The agreement will serve as an important catalyst for broadening India’s financial services presence in New Zealand and welcoming New Zealand financial institutions to India’s growing and dynamic financial services markets.
The schedules of specific commitments reflect progressive collaboration among both sides, with comprehensive commitments on market access and national treatment in key banking and insurance sectors and sub-sectors.
“India’s sectoral offers represent a forward-looking liberalisation approach, featuring enhanced Foreign Direct Investment (FDI) limits in banking and insurance, alongside a liberalised bank branch licensing framework allowing up to 15 bank branches to be established over four years. This is a significant expansion from the previously offered GATS limits of 12 branches,” the Ministry of Finance said in a statement.
These offers will enable Indian financial service suppliers to expand operations into New Zealand, strengthening India’s position in financial services exports and cultivating progressive sectoral growth.
They also position New Zealand’s financial institutions competitively in India’s dynamic and rapidly expanding financial services market, while simultaneously reflecting India’s commitment to progressive market liberalisation in consonance with its broader strategic objectives.
It further highlighted that Indian financial institutions are cushioned from arbitrary or discriminatory credit assessment practices in the New Zealand market.
The provision of credit rating will ensure parity of treatment with New Zealand domestic institutions, facilitate market access for Indian banks, insurance companies, and other financial service suppliers, and prevent discriminatory regulatory treatment that could restrict Indian financial institutions’ operational capabilities, it said.
The annex also places strong emphasis on financial technology and regulatory innovation. India and New Zealand have agreed to collaborate through regulatory and digital sandbox frameworks, facilitating cross-border fintech experimentation and positioning India as a potential fintech hub within the bilateral partnership.
