India, April 28 -- That the multilateral trading order is as good as dead is a bitter but undeniable fact in today's world. An emaciated rules-based trading regime does not negate the importance of trade, however. What it entails is countries relying more and more on bilateral agreements to pursue their trading objectives. India's free trade agreement (FTA) with New Zealand, signed on Monday and to be operationalised once New Zealand completes the necessary ratifications, is yet another example of India making incremental but steady advances in exploiting the bilateral route to buttress its trade objectives. Trade agreements are, in letter, complicated legal documents. The hallmark of a good trade deal is the economic spirit driving it. HT's reporting of the India-New Zealand FTA suggests that it is aligned with India's economic priorities. It will open up a relatively small but high-value export market for Indian manufacturers as well as white-collar workers in return for opening up Indian markets except in livelihood-sensitive sectors such as dairy. New Zealand has also promised investments in India worth $20 billion. How much the India-New Zealand deal delivers on its stated promises remains to be seen. Trade and investment promises are as much a function of the larger economic environment as they are of stated intent in bilateral agreements. The former, given the ongoing economic turmoil in the world economy is far from normal. And a deal is only as good as what private capital makes of it by getting its act together. As far as evaluating this FTA in the context of India's overall trade strategy is concerned, three larger points matter the most. The promises made by India in the FTA with New Zealand are in keeping with its approach of opening up sectors - except those such as dairy and agriculture where mass livelihoods need to be protected against subsidised exports from advanced countries. This, in turn, is in keeping with the larger objective of catalysing creative destruction in Indian manufacturing by putting pressure on uncompetitive firms, and it can also facilitate India's integration into global value chains by correcting some of the entrenched inverted duty structure bias. The approach of keeping labour mobility along with merchandise trade on the agenda should help protect Indian interests at a time when nativist and populist sentiments are on the rise in advanced economies....