Redefining trade diplomacy for Global South

The recently concluded negotiation of Free Trade Agreement (FTA) with New Zealand is more than just a commercial pact; it is a vindication of the Modi government’s “India First” trade doctrine. For years, critics argued that India’s refusal to compromise on agriculture was a stumbling block to global integration. Yet, this December, New Delhi has proven that firm red lines and astute diplomacy can coexist, delivering a deal that protects our poorest while propelling our most ambitious.

At the heart of this success is the government’s unwavering commitment to India’s 80 million dairy farmers. In a global trade environment often dominated by the interests of industrial agriculture, Commerce Minister Piyush Goyal’s declaration of dairy as a “complete no-go” was not just rhetoric—it was a promise kept. By keeping milk, cheese, and yoghurt strictly off the negotiating table with a country which is one of the largest dairy exporters with more than 6% market share, the administration has shielded our cooperative sector from the might of global giants like Fonterra. This stands in stark contrast to previous eras where such interests were often bartered away.

However, the genius of this deal—and credit must go to the Prime Minister’s vision of an Atmanirbhar Bharat—lies not in what we excluded, but in how we negotiated what we included. The Indian government has introduced a novel “Productivity-for-Access” framework. We have granted New Zealand controlled access to our apple and kiwifruit markets, but only in exchange for tangible technology transfer. The establishment of Centres of Excellence and a commitment of $20 billion in investment over 15 years ensures that every foreign apple sold here contributes to upgrading the orchards of Himachal and Kashmir. This is not passive liberalization; it is active industrial upgrading.

On the offensive front, the government has secured a decisive win for Indian exporters. Achieving zero-duty access for 100% of Indian exports—spanning textiles, gems, spices, and processed foods—is a massive boost for our MSMEs. This opening is poised to double bilateral trade to $5 billion, directly benefiting the Annadatas who grow the mangoes, bananas, and coffee that will now flow duty-free to Wellington.

Furthermore, the strategic inclusion of 5,000 annual work visas for Indian professionals highlights this government’s holistic view of trade—leveraging our demographic dividend alongside our goods.

This FTA is a masterclass in calibrated globalization. It silences the naysayers who doubted India’s ability to strike deals after withdrawing from Regional Comprehensive Economic Partnership (RCEP). By prioritizing the vulnerable while aggressively pushing for market access, the Modi government has created a template for future negotiations with the EU and the US. It sends a clear message to the world: New India negotiates not from a position of need, but from a position of strength, equity, and unwavering national interest.

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