Author: Chirayu Bhatt, Auckland

Should India and NZ go for the Free Trade Agreement?

Majority of the economists of the world do believe that Free Trade Agreement is a win-win situation for the nations involved. As far as the potential FTA (Free Trade Agreement) between New Zealand and India is concerned, it will create the following benefits to both the nations.

  • FTA Benefits for New Zealand:
  1. Better access for NZ business to India’s vast market
  2. More opportunities to export raw materials to India
  3. Lower tariffs for exporters
  4. More certainty for investors
  • FTA Benefits for India:
  1. Lower tariffs for export of Indian goods to NZ
  2. India can benefit from the Research & Development and innovations culture.
  3. More certainty for investors

A time-tested friendship:

The historic friendship between New Zealand and India started in 1890s when immigrants from Punjab and Gujarat came to New Zealand. According to 2013 census, more than 155,000 Indian nationals now live in New Zealand. The political, economic and military strength of India is increasing day by day and therefore, it is in the interest of both the nations to sign Free Trade Agreement sooner.

As per the 2014 statistics, total trade in goods between both countries were $1.1 billion and if NZ government wants to increase this figure to $2 billion per year, the Free Trade Agreement can help NZ achieve this goal.

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