New Zealand–India Free Trade Agreement faces growth potential and scrutiny

The New Zealand–India Free Trade Agreement (FTA) is projected to provide long-term commercial benefits, though its impact may be a 'slow burn' rather than an immediate transformation. Research from the New Zealand International Business Forum (NZIBF) and Westpac Economics suggests the agreement offers a platform for New Zealand businesses to establish a presence in India's growing economy, with significant opportunities identified in sheep meat, forestry, kiwifruit, apples, wine, education, and tourism.

Government modelling estimates the FTA could increase New Zealand’s annual GDP by approximately $380 million and exports to India by $836 million by 2036. However, experts note that meaningful dairy access remains an unresolved issue.

Simultaneously, the agreement faces scrutiny regarding trade imbalances. Critics and opposition groups in India have raised concerns over growing trade deficits with FTA partners and the potential risks to domestic agriculture and labor. In some regions, farmers and workers have staged protests demanding the cancellation of agreements with nations including the U.S., UK, and New Zealand, alleging that such pacts prioritize corporate interests over the domestic farm sector.