India's Economic Rise Set to Boost Gains for New Zealand in Free Trade Deal

India's rapid economic growth has made it a strategic partner for New Zealand, and their recently signed free trade agreement (FTA) is expected to deliver significant gains. According to a report from Australia-based Westpac Institutional Bank, India's scale and growth potential suggest that the FTA could add close to 0.1 per cent to New Zealand's GDP over the next decade.

The report highlighted India's status as one of the world's fastest-growing major economies, offering access to a market of 1.4 billion people, one fifth of the world's population. Under the FTA, 95 per cent of New Zealand's current exports will gain tariff elimination or substantial tariff reductions.

The estimated tariff savings are around NZ$43 million annually from day one, rising to about NZ$62 million when fully implemented based on current trade levels. The report noted that India is expected to become the world's third-largest economy this decade due to rapid growth in incomes and consumer spending.