Content India – New Zealand Free Trade Agreement PESA Mahotsav 2025 & the PESA Act, 1996 India – New Zealand Free Trade Agreement Why in News ? 22 December 2025: Press Information Bureau announced conclusion of the India–New Zealand Free Trade Agreement. Concluded within ~9 months (March–December 2025) → among India’s fastest-negotiated FTAs. Relevance GS II – International Relations Bilateral & Regional Groupings Strengthens India’s engagement with Oceania / Indo-Pacific economic architecture. Enhances India’s role as a rule-shaper in services- and mobility-centric trade agreements. India’s Trade Diplomacy Strategy Post-RCEP calibrated FTA model: market access + protection of sensitive sectors. Continuity with India–UK CETA, India–Oman CEPA → coherent IR–economic alignment. GS III – Indian Economy External Sector & Trade Policy 100% duty-free access for Indian exports; addresses tariff escalation barriers. Improves export competitiveness in textiles, engineering, pharma, leather, processed foods. Strategic Context Oceania Pivot: Positions India as a preferred economic partner in the Pacific–Oceania supply chains. Trade Diplomacy Continuity: Follows India–Oman CEPA (2025), India–UK CETA (2025), EFTA TEPA (2024). Geoeconomic Logic: Diversification away from tariff and non-tariff barriers in traditional markets. India–New Zealand Economic Snapshot New Zealand economy: Per capita income: USD 49,380 Imports (2024): USD 47 bn | Exports: USD 42 bn Overseas investment stock (Mar 2025): USD 422.6 bn Diaspora leverage: ~300,000 persons of Indian origin (~5% of NZ population). Bilateral Trade Trends Merchandise trade: USD 873 mn (2023–24) → USD 1.3 bn (2024–25) (+49%) Exports: USD 711 mn (+32%) India maintains positive trade balance. Long-term trend (2015–25): Exports from India: +130% Imports from NZ: +7.2% Services trade: USD 634 mn (2024); +13% YoY Key sectors: IT, travel, business services. Core Architecture of the FTA Tariff liberalisation: 100% duty-free access for Indian exports into NZ (8,284 tariff lines). NZ average applied tariff 2.2% → 0% at EIF. India’s tariff offer: Coverage: 70.03% tariff lines Exclusions: 29.97% (dairy, sugar, key agri items, metals, arms). Phasing: 30%: Immediate elimination 35.6%: Phased (3/5/7/10 years) 4.37%: Tariff reduction 0.06%: TRQs (apples, kiwi, honey, albumins) Protection of Sensitive Sectors Dairy & core agriculture fully excluded → shields small & marginal farmers. TRQs + Minimum Import Price + seasonality prevent import surges. Reflects India’s calibrated FTA approach post-RCEP exit. Sector-wise Gains to India Textiles & Apparel: NZ imports from world: USD 1.9 bn Tariffs up to 10% → 0% Engineering goods: NZ imports: USD 11 bn India exports (FY25): USD 77.5 bn globally Pharmaceuticals: NZ pharma imports: USD 1.4 bn Regulatory annex for faster approvals. Leather & Footwear: NZ imports: USD 0.51 bn Zero duty across 181 tariff lines. Agri & Processed Food: 1,379 tariff lines (17%) Tea already zero; others peak 5% → 0%. Services & Mobility: Biggest Structural Win Services coverage: Commitments in 118 sectors; MFN in 139 sectors. AYUSH & Traditional Medicine Annex (NZ first-ever): Ayurveda, Yoga, Siddha, Unani, Homeopathy. Coexists with Maori health systems → soft power synergy. Student mobility (binding commitments): Work: 20 hrs/week Post-study visas: STEM Bachelor: 3 yrs Master’s: up to 3 yrs PhD: up to 4 yrs Professional mobility: 5,000 visas (3 yrs) for: AYUSH practitioners, Yoga instructors, Indian chefs, music teachers IT, engineering, healthcare, education, construction. Working Holiday Visa: 1,000 Indians/year, multiple entry, 12 months. Agriculture & Technology Cooperation Action Plans: Apple, Kiwi, Honey. Interventions: Centres of Excellence Planting material & orchard management Post-harvest & food safety Institutional mechanism: Joint Agriculture Productivity Council Outcome: Productivity gains without market distortion. Investment & Regulatory Provisions FDI commitment: USD 20 bn over 15 years. IPR: NZ to amend laws within 18 months for EU-level GI protection. Trade facilitation: Customs clearance: 48 hrs (24 hrs for perishables) Advance rulings, e-documentation. Rules of Origin: Anti-circumvention safeguards. Way Forward Ratification after domestic processes; EIF expected 2026. Model FTA for: Services-heavy agreements Mobility-centric trade diplomacy Balanced agri protection Conclusion The India–New Zealand FTA marks a qualitative shift from tariff-centric FTAs to mobility, services, technology, and soft-power driven trade architecture, aligning directly with Viksit Bharat @2047 goals. PESA Mahotsav 2025 & the PESA Act, 1996 Why in News ? 23–24 December 2025: PESA Mahotsav – Utsav Lok Sanskriti Ka organised by the Ministry of Panchayati Raj at Visakhapatnam. Commemorates the anniversary of the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA). Objective: Awareness, capacity-building, and celebration of community-led governance in Fifth Schedule Areas. Relevance GS II – Polity & Governance (CORE AREA) Constitutional Framework Article 244 + Fifth Schedule; operationalisation through PESA. Addresses the governance vacuum left by the 73rd Constitutional Amendment. Centre–State Relations States bound by PESA’s mandatory features; limits legislative discretion. Rights-based Governance Consent-based land acquisition; protection against displacement. Constitutional & Demographic Context ST population: ~8.6% of India’s population. Scheduled Areas notified by the President under Article 244 + Fifth Schedule (excluding Assam, Meghalaya, Tripura, Mizoram). 73rd Constitutional Amendment (1993): Added Part IX + Eleventh Schedule (29 subjects). Did not automatically apply to Fifth Schedule Areas → governance gap. PESA Act, 1996 filled this gap by extending Panchayati Raj to Scheduled Areas with tribal-specific safeguards. Core Philosophy of PESA Gram Sabha-centric governance reflecting tribal customary law. Asymmetric decentralisation: stronger village-level powers than general PRIs. Legal override: State laws cannot dilute PESA-mandated powers. Salient Features of the PESA Act Gram Sabha as the fulcrum: Approval of development plans, projects, and programmes. Mandatory consultation/consent for land acquisition, rehabilitation. Resource sovereignty: Ownership & management of Minor Forest Produce (MFP). Control over minor water bodies and minor minerals. Cultural protection: Safeguards customs, traditions, dispute resolution mechanisms. Administrative accountability: Prior recommendation for mining leases. Regulation of money lending. Democratic deepening: Prevents alienation of tribal land; strengthens social justice. Fifth Schedule Coverage: States with Scheduled Areas: 10 Administrative footprint (Total): Villages: 77,564 Panchayats: 22,040 Blocks: 664 Districts: 45 Rules status: PESA Rules notified: Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Madhya Pradesh, Maharashtra, Rajasthan, Telangana. Draft Rules: Odisha, Jharkhand. Government Implementation Measures Capacity-building (2024–25): 2 rounds of master trainer programmes. >1 lakh elected representatives & officials trained. Digital governance: PESA–Gram Panchayat Development Plan Portal (launched Sept 2024). Enables hamlet-wise planning and tracking of: Central & State Finance Commission grants CSS, State schemes, local funds. Institutional support: Dedicated PESA Cell within MoPR (legal, social science, finance experts). Knowledge localisation: Manuals translated into Telugu, Marathi, Gujarati, Odia + tribal languages (Santhali, Gondi, Bhili, Mundari). Centres of Excellence (CoE): Indira Gandhi National Tribal University, Amarkantak: Central share: ₹8.01 crore (5 years). Focus: documentation, training, dispute resolution models, 5 model PESA Gram Sabhas. Evidence from the Ground: Outcomes & Best Practices “PESA in Action” (July 2025): Compilation of 40 success stories across states. 1) Livelihoods & Local Economy (Chhattisgarh – Kanker) Village: Khamdhogi (443 population). Interventions: Mandatory male–female household representation in Gram Sabha. Committees + technical training. Outcomes: Forest produce, fisheries, bamboo-based activities. Shift from subsistence to diversified livelihoods. 2) Customary Law & MFP (Himachal Pradesh – Kinnaur) Product: Chilgoza pine nuts. Gram Sabha control over harvesting & revenue sharing. Equal household distribution + plot-wise allocation. Demonstrates custom + statutory harmony under PESA. 3) Minor Minerals & Revenue (Telangana – Godavari Basin) Tribal Sand Mining Cooperative: ₹40 lakh annual revenue. Funds channelled to education, health, infrastructure. Converts extractive activity into community asset creation. 4) Anti-displacement Shield (Rajasthan – Udaipur) Gram Sabha vetoed eviction under wildlife sanctuary notification. Used PESA + Rajasthan Panchayati Raj Act, 1999. Outcome: Land, livelihood, and cultural security preserved. Governance Impact Assessment Economic: Local value capture from forests, minerals, water. Social: Inclusion of women, customary institutions revived. Political: Real decentralisation beyond devolution on paper. Environmental: Community-led sustainable resource management. Challenges Delayed rule-making in some states. Variable administrative compliance with Gram Sabha consent. Capacity asymmetry across regions. Overlap/conflict with forest & mining departments. Conclusion PESA Mahotsav 2025 symbolises a shift from bureaucratic tribal welfare to constitutional self-rule. With data-backed capacity-building, digital planning tools, cultural anchoring, and legal empowerment, PESA is evolving into India’s most radical decentralisation experiment. Effective implementation is central to inclusive growth, federal justice, and democratic deepening in Scheduled Areas.