India-New Zealand FTA Expected to Double Trade in Coming Years, Boost Employment and Investment: Experts
Experts foresee the India-New Zealand FTA doubling trade within two to three years, enhancing employment and investment opportunities.
New Delhi, October 20 (Daily Kiran) : A positive outlook surrounds the Free Trade Agreement (FTA) between India and New Zealand, according to industry leaders. Harvansh Chawla, Chairman of the BRISEC Chamber of Commerce and Industry, stated that the agreement will significantly benefit the Indian economy and trade in the long term. However, he noted that the immediate effects may not be visible, with results expected to emerge over the next six months to a year.
Currently, trade between India and New Zealand stands at approximately $2.8 billion annually. Both nations aim to double this figure within five years, but Chawla believes this target could be achieved in just two to two and a half years given current circumstances.
Chawla emphasized that India and New Zealand are poised to become vital trade partners, creating new opportunities for both countries. However, he identified the ongoing global geopolitical climate, particularly tensions in West Asia, as a significant challenge. The unrest in the Middle East is impacting international trade, commodity prices, and supply chains, leading to increased raw material costs and delays in delivery.
He explained, “There can be a significant price difference from the time an order is placed to its delivery, which traders must consider.”
Chawla urged the government to introduce more supportive financial schemes for exporters, advocating for lower interest rates and more flexible banking options. This would enable businesses to secure the necessary capital to fulfill larger orders.
Discussing employment, he indicated that if trade doubles, it would positively impact job creation. New industries, factories, and increased production will generate more employment opportunities. He pointed out that if a company’s revenue increases from ₹100 crore to ₹125 crore, the benefits would extend beyond the industry, influencing employment and overall economic activity.
Chawla refuted the notion that the FTA would lead to job losses, asserting that trade expansion is likely to result in increased employment and investment.
