Why in the News?

• The India-New Zealand Free Trade Agreement has been ratified and will come into effect on October 20, with both sides aiming to double bilateral trade to Rs. 35,000 crore over the next four to five years.

What’s in Today’s Article?

• About India-New Zealand Relationship (Background, Trade & Economic Ties, Diaspora, etc.)
• News Summary (Key Features of FTA, Significance)

India-New Zealand Bilateral Relationship

• India and New Zealand share a relationship grounded in Commonwealth membership, parliamentary democracy, and growing economic complementarity, though the two countries have historically engaged less intensively than India has with other partners in the region.

Trade and Economic Ties

• Bilateral trade between the two countries stood at $1.3 billion in 2024-25, with India being New Zealand's 9^th largest export market.
• India's exports to New Zealand include pharmaceuticals, engineering goods, textiles, ceramics, carpets, automobiles and auto components.
• New Zealand's exports to India consist largely of agricultural products, timber, wool and specialised manufactured goods.
• New Zealand currently maintains tariffs of up to 10% on key Indian goods, including ceramics, carpets, automobiles, textiles and auto components, precisely the categories where the FTA delivers gains.

Agriculture and Sensitive Sectors

• Agriculture has been the most delicate area in negotiations. New Zealand is a highly competitive agricultural exporter with advanced dairy and horticultural capabilities.
• India has consistently protected its dairy sector and vulnerable farm segments in trade negotiations, and this agreement follows that pattern.
• New Zealand's expertise in specific areas, notably kiwifruit farming and apiculture, offers potential for technology collaboration rather than purely commercial competition.

People-to-People and Diaspora Links

• The Indian community is the third-largest ethnic group in New Zealand.
• Cricket and Commonwealth sporting ties sustain regular contact, and New Zealand has been a preferred destination for Indian skilled migrants in sectors such as IT, healthcare and engineering.

News Summary: The FTA and Its Provisions

• Union Commerce and Industry Minister Piyush Goyal announced the agreement's entry into force, describing it as the next important milestone in the bilateral economic partnership.

Trade Liberalisation

• According to New Zealand's foreign trade office, the agreement is set to:
  • Erase import levies on all Indian goods entering New Zealand
  • Allow 95% of New Zealand's exports to India to enter either tariff-free or at sharply reduced levies
• For India, this provides duty-free access to 100% of its exports, a substantial improvement given existing tariffs of up to 10% on major categories.

Protection of Sensitive Sectors

• The Union Minister emphasised that India has safeguarded its sensitive sectors, granting no concessions on: Dairy, Onions, Almonds, Chickpeas, Peas, Artificial honey, Sugar and other agricultural produce.
• This is significant because dairy access has been the single most contentious issue in India's recent trade negotiations, including with the European Union and in the India-EFTA talks.

Investment Commitments

• New Zealand has committed $20 billion in foreign direct investment into India as part of the deal, directed toward sectors including startups, manufacturing & infrastructure.
• The investment is expected to flow over the next 15 years.

Agricultural Productivity Partnership

• The agreement establishes an agricultural productivity partnership, under which New Zealand's technology will combine with India's scale and growing demand.
• The Union Minister pointed to kiwi farming and apiculture as areas of particular promise.

Benefits for MSMEs and Artisans

• The Minister noted that the deal will benefit India's micro, medium and small enterprises, along with farmers, handloom artisans and weavers, sectors where New Zealand's tariff structures have previously created barriers.

Technology and Manufacturing Collaboration

• The Minister observed that New Zealand possesses technological expertise in engineering and other manufacturing.
• He suggested that New Zealand companies could support Indian firms, invest, or set up manufacturing in India to capture global markets.
• A key argument advanced was that in several countries, including New Zealand, labour is scarce and expensive, making manufacturing in India more economical.
• He added that global investors are interested in manufacturing in India not only for the large domestic market but also to export seamlessly to about two-thirds of the global economy where India has preferential market access.

Significance

• For India's export sectors: Duty-free access removes a competitive disadvantage for ceramics, carpets, textiles and auto components, categories where Indian producers compete directly with suppliers from countries already having preferential access to New Zealand.
• For sensitive agriculture: By excluding dairy and major farm products, India has demonstrated a consistent negotiating template, liberalising manufactured goods while protecting politically sensitive agricultural segments.
• For investment diversification: The $20 billion commitment adds to India's efforts to attract FDI amid weak global flows, though the fifteen-year horizon means the impact will be gradual.
• For India's broader trade strategy: The simultaneous progress with New Zealand, Canada and Chile suggests an accelerating push to expand preferential market access, reflecting a strategic response to global tariff uncertainty and the disruption of established trade patterns.

About Damodar River:

• It is a major river of eastern India and an important part of the Ganges River System.
• It flows through the states of Jharkhand and West Bengal.
• This river is sometimes called "the Sorrow of Bengal" because it used to cause big floods in the plains of West Bengal.
• Course:
  • It originates from the Palamau hills of Chota Nagpur Plateau in Jharkhand.
  • From its source, the river flows in a southeastern direction, passing through the Chota Nagpur Plateau, a region known for its rich mineral deposits.
  • In its lower course, it flows through West Bengal’s plains and is joined by several tributaries.
  • It meets the Hooghly River at Shayampur, which is 48 km from Kolkata.
• Total Length: 592 km
• The Damodar basin is the industrial and mineral heartland of India.
  • It traverses the Gondwana coalfields — Jharia, Raniganj, Bokaro, Karanpura and Giridih — which contain the bulk of India's high-grade coking coal reserves, making the valley the foundation of the country's iron, steel and thermal-power industries.
• Tributaries: Barakar River, Konar River, Jamunia River, Bokaro River, Sali River, Ghari River, Guaia River, Khadia River, Bhera River.
• Damodar Valley Project:
  • It is a multipurpose river valley project in eastern India, developed on the Damodar River and its tributaries with objectives including flood control, irrigation and power generation.
  • The project is operated by the Damodar Valley Corporation (DVC), an undertaking of the Indian Government established in July 1948.
  • It was one of the first major multipurpose river valley projects undertaken in independent India.
  • The DVC constructed dams at Tilaiya and Maithon on the Barakar, Konar on the Konar, and Panchet on the Damodar, together with the Durgapur barrage that feeds the Damodar Valley Canal system.

About Rebate of State and Central Taxes and Levies (RoSCTL) Scheme:

• It is a significant export incentive framework introduced by the Ministry of Textiles in 2019.
• Objective: To compensate for the State and Central Taxes and Levies in addition to the Duty Drawback Scheme on export of apparel/garments and Made-ups by way of rebate.
• It aims to reimburse all embedded State and Central Taxes/Levies for exports of manufactured goods and garments.
  • These taxes are incurred during the production of garments and made-ups before export.
• It has been established as a successor for the old “Rebate of State Levies (RoSL) Scheme.
  • The difference between the RoSL & RoSCTL Schemes is that under the RoSL Scheme, there was no benefit on the central tax and levies.
  • But in the RoSCTL scheme, the exporter will get a rebate of both State and Central tax and Levies.
• Why is RoSCTL Important?
  • Many taxes (like electricity duty, mandi tax, fuel tax, etc.) get embedded in production costs.
  • These cannot be claimed through GST or duty drawback.
  • RoSCTL refunds these leftover taxes, reducing production cost and increasing competitiveness.
  • It is based on an internationally acceptable principle that taxes and duties should not be exported, to enable a level playing field in the international market for exports.
  • Hence, not only indirect taxes on inputs are to be rebated or reimbursed, but also other un-refunded State & Central taxes and levies are to be rebated.
• Features:
  • It provides transferable and sellable duty credit scrips to exporters based on the Free on-board (FOB) value of their exports.
  • The scrips shall be issued electronically on the Customs system.
  • The duty credit scrips shall be used for payment of Basic Customs Duty on the import of goods. These scrips shall be freely transferable.
  • The duty credit available in an e-scrip shall be transferred at a time for the entire amount in the said e-scrip to another person, and transfer of the duty credit in part shall not be permitted.
  • Validity of e-scrip: The period of validity of the e-scrip, of one year from its creation, shall not change on account of transfer of the e-scrip.
  • Eligibility: All exporters of garments/apparel and made-ups manufactured in India are eligible to take benefit under this scheme, except entities/IECs under the Denied Entity List of the Directorate General of Foreign Trade (DGFT).
  • Implementing agency: It is implemented by the Department of Revenue, Ministry of Finance.

About Nevados de Chillán Volcano:

• It is a large composite stratovolcanic complex located in the Southern Volcanic Zone of the Chilean Andes.
• It's one of the most active volcanoes in the Ñuble Region of Chile.
• This volcanic group is made up of three main peaks that overlap each other.
  • The highest peak is Cerro Blanco (also called Volcán Nevado).
  • To the southeast, is Volcán Viejo (also known as Volcán Chillán).
  • In the middle of these two is Volcán Nuevo.
• Documented eruptions date back to the 17th century, while geological deposits preserve evidence of activity dating back thousands of years.
• It is particularly known for lava-dome growth, explosions and pyroclastic activity.

About Painganga Wildlife Sanctuary:

• It is located in the Yavatmal district of Maharashtra.
• It derives its name from the river Painganga, or Penganaga River (a tributary of the Wardha River), which borders the sanctuary on its three sides.
• The sanctuary’s geological formation consists of basaltic rock, which contributes to the thermal mass of the region.
• The sanctuary features several ancient rock shelters adorned with petroglyphs, providing insights into the region’s prehistoric human activity.
• Flora: It is characterized by its diverse topography, which includes rolling hills, riverine valleys, and dense deciduous forests primarily composed of teak and bamboo.
• Fauna:
  • The numerous species of fauna sheltered here include Fox, Leopard, Jackal, Hare, Four Horned Antelope, Porcupine, Sambar, Nilgai, Black Buck, Chinkara, and many others.
  • It is also a paradise for birdwatchers with numerous species of avifauna like Vulture, Bulbul, Dove, Kingfisher, Cuckoo, Kite, and others.

About Neodymium-Iron-Boron (NdFeB) Magnets:

• NdFeB magnets are a type of rare-earth permanent magnet composed of an alloy of neodymium (Nd), iron (Fe), and boron (B).
• First developed in the early 1980s, they are the strongest commercially available permanent magnets in the world, offering an extraordinary combination of high magnetic energy density, coercivity, and remanence in a compact size.
• The chemical formula for the primary magnetic phase in an NdFeB magnet is Nd₂Fe₁₄B — a tetragonal crystalline structure that gives the material its exceptional magnetic properties.
• Typically, the composition includes 29-32.5% neodymium, 64-69% iron, and 1-1.2% boron.
• Their magnetic performance can deteriorate at high temperatures, although specialized grades are designed for higher-temperature applications.
• The addition of heavy rare-earth elements like dysprosium (Dy) or terbium (Tb) is common in high-temperature grades to maintain performance above 150°C.
• All the NdFeB magnets are prone to corrosion. They will require a form of protective coating. The standard coating is a triple-layer plating of nickel copper nickel (Ni-Cu-Ni).
• Applications:
  • NdFeB magnets find widespread use in various industries, including electronics, automotive, medical devices, renewable energy, and more.
  • In everyday products like headphones, electric motors, sensors, speakers, and generators, NdFeB magnets deliver enhanced performance, underlining their adaptability in modern technology.

About Ophiopogon Japonicus:

• It is an evergreen perennial herb that grows in dense clumps.
• Other names: Commonly known as dwarf lilyturf or mondo grass.
• It is a perennial and grows primarily in the subtropical biome.
• Appearance: It has narrow, grass-like leaves with retroserrulate margin, small white to pale-purple flowers, and blue, berry-like fruits.
• Distribution: The plant is native to East Asia and is found in China, Japan, Korea and Nepal, generally at elevations between 200 and 2,800 m.
• Applications
  • Its tuberous roots are known as Ophiopogonis Radix or Maidong in Chinese and have long been used in traditional Chinese medicine.
  • It is reported that  japonicus polysaccharides (OJPs) have a variety of biological activities, including anti-diabetes, anti-inflammatory, kidney protection, hepatoprotective and immunomodulatory activity.

About Khejri Tree:

• Khejri (Prosopis cineraria (L.) Marbride) is considered a sacred tree in Rajasthan.
• It is also called jant or janti in areas like Alwar, Sikar, Jhunjhunu,
• Khejri is called the state tree of Rajasthan.
• Distribution: It is found growing in arid and semi-arid parts of Rajasthan, Gujarat, Haryana, Punjab, Delhi and some parts of southern India.
• Features:
  • The tree is frost and drought resistant and tolerates extreme temperature ranging from 40–45 0C in summer to less than 10 0C in winter.
  • It is capable of growing in areas of rainfall ranging from 100–600 mm.
  • The tree can withstand the hottest winds, the driest season and stay alive where other plants cannot survive.
  • It is a deciduous tree with finely divided, feathery leaves and small yellow flowers.
  • It is known for its adaptability to arid conditions, the tree thrives in dry and sandy soils.
• Significance:
  • It is a nitrogen-fixing tree which enhances the fertility of the soil.
  • The fruit is used to make the very popular local dish ‘Sangri’
  • The bark of this tress is used medicinally for a range of ailments.
  • It plays a vital role in preserving the ecosystem of arid and semi-arid areas, mainly in the Thar Desert.
  • Its highly nutritious leaves constitute important source of fodder for livestock while nutritious pods are valued as vegetable for human beings.

About Sulphur:

• Sulphur (identified by the letter S) is a non-metallic chemical element.
• Occurrence: It can be found as a pure element or as sulphate or sulphide minerals.
• It occurs naturally in the environment and is believed to be the thirteenth most abundant element in the earth’s crust.
• Properties
  • In its pure form, sulfur is a tasteless, odorless, brittle solid with a pale yellow color.
  • It’s a poor conductor of electricity that doesn’t dissolve in water.
  • It combines directly with almost all the elements with the exception of gold, platinum and the noble gases.
• Distribution: In India, it is mainly found in Puga Valley (Jammu & Kashmir), Barren Island of Bay of Bengal, Andhra Pradesh Kerala and Himachal Pradesh.
• Uses of Sulphur:
  • Chemical Industries: Sulphur is an essential raw material for many chemical industries and is essentially used for the production of sulphuric acid.
  • Sulphuric acid is a strong mineral acid which is used in ore processing, fertilizer manufacturing, oil refining, waste water processing and chemical synthesis. 
  • Other Industries: The powdered form of sulphur produced by sublimation process is generally used in rubber vulcanisation, agricultural dusts, pharmaceutical products and stock feeds.
  • Sulphur is used as a light-generating medium in the rare lighting fixtures known as “sulphur lamps”.
  • Sulphur compounds are also used in detergents, fungicides, dyestuffs and agrichemicals.

About AASHVAST Lab:

• AASHVAST stands for Assessment and Analysis of Electronic Systems Hardware for Vulnerabilities and Security Threats.
• It is a specialized testing and validation system developed to examine military electronics for hidden security weaknesses.
• The primary goal is to ensure that critical military systems operate exactly as intended and do not contain unauthorized components or malicious code.
• It is developed by the private firm for the Directorate General of Electronics and Mechanical Engineering (DG EME).
• Working:
  • Scale: There are approximately 14 types of vulnerabilities that the labs can detect.
  • Neutralize Threats: It neutralizes the common threats of enemy interference in Indian drones, preventing them from performing their designated tasks in a contested area.
  • Inspect Both Software and Hardware: The facility can inspect both hardware and software components used in drones, communication systems, sensors, and other defence equipment.
    • It examines the software that operates these unmanned aerial vehicles (UAVs) – to identify and eliminate firmware-level vulnerabilities.
  • Location based Bug Test: The system examines location-based security controls and assesses how a drone would respond to GPS spoofing or jamming by an adversary.
  • It can scan systems for hidden passwords, embedded keys and remote-access tools. It can also check whether a drone accepts only manufacturer-approved software updates.
• Significance:
  • The launch of AASHVAST Labs marks a major step toward strengthening the cyber security and resilience of India’s defence infrastructure.
  • The facility will help ensure that military drones, sensors, communication systems, and electronic platforms remain secure from hidden vulnerabilities and evolving cyber threats.