NZ-India FTA Set to Boost Kiwi Economy with Tariff Savings

New Zealand is poised to reap significant benefits from its recently signed free trade agreement (FTA) with India, according to a report by Australia-based Westpac Institutional Bank.

The report highlights India's rapid economic growth and its potential as a strategic partner for New Zealand. With an economy expected to become the world's third-largest this decade, India offers access to a vast market of 1.4 billion people.

The FTA is expected to add close to 0.1 per cent to New Zealand's GDP over the next decade. Tariff savings are estimated at around NZ$43 million annually from day one, rising to about NZ$62 million when fully implemented based on current trade levels.

The report emphasizes that the benefits of the FTA extend beyond traditional merchandise trade to investment, services, tourism, and education exports. Importantly, it also highlights the strategic relations and economic diversification benefits, especially in the current geopolitical environment.