NZ-India FTA Set to Boost Kiwi Economy

New Zealand's free trade agreement (FTA) with India is expected to yield significant gains due to India's economic growth, according to a report from Australia-based Westpac Institutional Bank. As one of the world's fastest-growing major economies, India offers access to a market of 1.4 billion people, or one fifth of the world's population.

The FTA will see 95% of New Zealand's current exports gain tariff elimination or substantial reductions. Estimated savings from day one total around NZ$43 million annually, rising to about NZ$62 million when fully implemented based on current trade levels.

India is expected to become the world's third-largest economy this decade and its middle class is predicted to exceed the entire population of the EU or ASEAN within five years. This increasing influence in global trade, technology, investment, and geopolitics makes India a strategic partner for New Zealand.