Indian PM Set To Make A Fleeting Visit
With the New Zealand/India Free Trade Agreement (FTA) dominating political debate here, India Prime Minister Narendra Modi will be visiting New Zealand next week.
The recent signing at a lavish ceremony in India means NZ primary sector exporters can breathe a sigh of relief.
Kudos also to National and Trade Minister Todd McClay for delivering the trade deal just as promised during the 2023 election campaign.
For the red meat sector, the FTA will expand New Zealand red meat exporters’ trade options in a challenging global environment.
Exporters are operating in a world of rising protectionism and ongoing volatility. Having a broader mix of markets and expanding reach will help spread risk and provide more stability for farmers and exporters.
India remains a market with significant long-term potential and with strong promise.
Now the world’s most populous country and is expected to become the third-largest economy within the next five years. As incomes rise in India, so will demand for high-quality natural protein.
NZ sheepmeat exports to India currently face 30% tariff and these will come down progressively. The FTA also delivers better market access for apples, kiwifruit, wool, forestry products, and honey.
But the signing of the FTA is just a start.
The full benefits of the agreement will require ongoing commitment from both government and industry.
India remains a complex and highly competitive market, and success for New Zealand lies in sustained commitment, local partnerships and a long-term approach.
Trade agreements only work when they’re underpinned by trusted business-to-business relationships.
Minister McClay and his team have done the hard yards. Now, it’s time for everyone else to put their shoulders to the wheel.
While two-way India-New Zealand trade sits at just NZ$3.7 billion a year, India is on track to become the third largest economy in the world in coming years. The scale of the opportunity for New Zealand businesses is huge.
