NZ-India FTA Set to Deliver Long-Term Benefits for Exporters
New Zealand's free trade agreement (FTA) with India is set to deliver commercially meaningful gains for exporters, but its true value lies in its long-term benefits.
The report by the New Zealand International Business Forum and Westpac Economics suggests that while immediate tariff savings are significant, the FTA will provide a platform for businesses to develop new products and establish stronger commercial relationships in one of the world's fastest-growing major economies.
The agreement is expected to lift New Zealand's annual GDP by around $380 million and exports to India by $836 million by 2036, according to government-commissioned modelling. However, the report considers these estimates conservative, as they only capture direct effects and not the wider benefits that will accumulate as India's economy grows.
NZIBF Executive Director Felicity Roxburgh emphasized that the agreement provides a foothold in one of the defining economic growth stories of the coming decades, with its value expected to build over time as more businesses enter the market and the relationship broadens.