Indian Economy News

India–New Zealand FTA to create jobs, lift incomes as doors open to 1.4 billion Indian consumers

A major step has been taken by both India and New Zealand for strengthening the economic relationship between the two nations and moving towards a Free Trade Agreement (FTA), which will help both nations by generating jobs, increasing income, and opening trade avenues. The Prime Minister of New Zealand, Mr. Christopher Luxon, stated that there is immense potential for New Zealand in accessing the large market of 1.4 billion consumers in India, which will have a dual advantage for Indian consumers in terms of increased choices, better prices, and better supply chains. The Free Trade Agreement will help cut down trade restrictions between the nations in various sectors like agriculture, dairy products, food processing, education, and the services sector.

From the perspective of India, the proposed Free Trade Agreement is largely in line with the overall trade and growth strategy, which focuses on integrating more into the global value chain, encouraging investments, and making the overall export competitive. A greater presence in New Zealand’s market would help Indian exporters, including the pharmaceutical sector, textiles, engineering, information technology services, and the professional sector. Apart from that, it is expected that the agreement would help in the overall technology transfer, skill, and high-value sector, which would result in overall productivity and job creation. As both countries are attempting more diversified and strong trade relationships in the face of global uncertainty, the Free Trade Agreement between the two nations is expected to have a potential positive effect on enhancing overall incomes and supporting sustainable economic growth.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.