India- NZ FTA Set to Boost Kiwi Economy by Over $43 Million Annually
New Zealand's economy is set to benefit significantly from its recently signed free trade agreement (FTA) with India, according to a report by Westpac Institutional Bank.
The report highlights India's rapid growth and increasing influence in global trade, technology, investment, and geopolitics. With an expected 0.1 per cent boost to New Zealand's GDP over the next decade, the FTA could bring substantial gains to both countries.
India is considered a strategic partner for New Zealand due to its scale and growth potential. The report notes that India's middle class is set to exceed the entire population of the EU or ASEAN within five years, making it a significant market for trade.
The FTA provides tariff elimination or substantial reductions on 95 per cent of New Zealand's current exports, with estimated annual savings of around NZ$43 million from day one and rising to about NZ$62 million when fully implemented. Benefits extend beyond merchandise trade to investment, services, tourism, and education exports.
The report also highlights the importance of diversifying trade relationships, as India is currently only New Zealand's 10th-largest export market despite its economic scale.