FTA with India to add 0.1% to New Zealand GDP, says Westpac

A new report from Australia-based Westpac Institutional Bank says India's free trade agreement (FTA) with New Zealand could add close to 0.1 per cent to New Zealand's GDP over the next decade. The report, covered by The Hawk, says 95 per cent of New Zealand's current exports gain tariff elimination or substantial reductions, with estimated tariff savings of around NZ$43 million annually from day one, rising to about NZ$62 million when fully implemented. India is currently New Zealand's 10th-largest export market despite its economic scale.

Separately, Frontline reports that India's expanding FTA network faces a utilisation gap: only 20-30 per cent of eligible Indian exports use preferential tariffs under existing agreements, compared to 60-70 per cent utilisation by partner countries exporting into India. Commerce Minister Piyush Goyal announced India has signed nine FTAs in four years, with eight or nine more under negotiation, targeting coverage of 75 per cent of global trade. The article notes that India's higher average tariff (12.6 per cent) means foreign producers gain more from preferential access than Indian exporters do in low-tariff partner markets.