Indian community welcomes ‘momentous’ free trade deal

Source: Radio New Zealand

New Zealand’s Indian community has welcomed the government’s decision to sign a long-awaited free trade agreement with India next week in New Delhi, describing it as a major milestone in bilateral trade ties.

Trade Minister Todd McClay has confirmed that legal verification of the agreement has been completed, with both governments set to formally sign the deal on 27 April.

Negotiations concluded in December last year.

The government says the agreement will eliminate or reduce tariffs on 95 percent of New Zealand exports to India, one of the highest levels secured in any Indian trade deal.

The signing will now trigger a parliamentary process, with the full text and a national interest analysis to be submitted and reviewed by a select committee, alongside public submissions.

Business and community leaders say the deal has been a long time coming, potentially unlocking significant economic opportunities.

That said, some are urging caution around implementation and migration safeguards.

Veer Khar, president of the New Zealand Indian Central Association, said he remained confident the deal would ultimately gain cross-party backing.

“It’s an election year, so we understand political parties will make the most of the opportunity to take shots at each other and that’s fair and part of the process,” he said.

“But ultimately, we’re confident the deal will be signed because it offers so much benefit.”

Sudesh Jhunjhnuwala, chief executive of Sudima Hotels and Hind Management, described the agreement as a “once in a lifetime deal”.

Having been part of the prime minister’s delegation last year, he said India’s renewed interest in an FTA with New Zealand came as a surprise.

He added that establishing direct flight connections would be a natural next step.

“Whenever there’s a direct flight, tourism from India takes off, and at the same time it will send more tourists to India as well,” he said.

Jhunjhnuwala said stronger economic conditions driven by the FTA would also support domestic tourism.

“The exciting part about the FTA is that it brings economic benefits to New Zealand, he said.

“And when the economy is doing well, people spend more locally. Over 50 percent of our business comes from domestic tourism.”

Dame Ranjna Patel said the level of public debate around the agreement was disproportionate.

“When New Zealand signed the China free trade deal there wasn’t this much kerfuffle,” she said.

“We’re a very small cog in the system, and I don’t know what fearmongering is about the FTA. It’s such a good thing to happen.”

She said the political noise could be related to the upcoming election.

“We probably won’t get a second chance if we turn it down right now,” she said.

Sunil Kaushal, chief executive of the India New Zealand Business Council, called the signing “a momentous occasion” that had been decades in the making.

“It’s been a long time coming,” he said. “As the good old Mainland Cheese ad would say, ‘good things take time’.”

Kaushal said he believed Parliament would ultimately support the agreement.

“I think Labour will make the best decision for the country rather than the party because this deal will add more jobs and more money into the economy,” he said.

Arunima Dhingra, chief executive of immigration and education agency Aims Global, welcomed the signing but said attention must now turn to outcomes.

“For years we’ve talked about the potential, and now we’re keen to see what it actually delivers,” Dhingra said.

She said the agreement could strengthen collaboration in education, skilled talent and investment.

“There are parts of India that are world-leading at the moment,” she said.

“Better partnership and alignment could allow New Zealand to test ideas on a much larger global stage.”

Dhingra emphasised the need to focus on skilled migration.

Kush Bhargava, chief executive of the Aotearoa Bharat Economic Foundation, said the deal would boost New Zealand businesses by improving direct links with India and reducing tariffs, calling it a potential “game changer”.

Manu Lambai, manager of Indian jewellery giant Malabar Gold and Diamonds’ Auckland showroom, said the deal would also expand access to specialised products in New Zealand.

“Those who make these kinds of specialised, handcrafted jewellery are in India, and with the FTA we can bring them directly to New Zealand,” Lambai said.

The company entered the New Zealand market following the country’s comprehensive economic partnership agreement with the United Arab Emirates.

Mahesh Muralidhar, chief executive of Phase One Ventures and National Party candidate for Tāmaki, said the agreement would open up new opportunities.

“India is one of the fastest-growing economies in the world and will maintain that growth for many years,” he said.

“There is a highly engaged middle class that is growing rapidly and will demand more services, products and food.”

He said New Zealand was well placed to meet that demand through innovation and expertise, and that the deal would also hold significance for the Indian diaspora.

Labour MP for Maungakiekie Priyanca Radhakrishnan said any agreement must serve New Zealand’s long-term interests, raising concerns that still needed addressing.

“Labour has raised a number of concerns about the free trade agreement that still need to be clarified by the government,” she said.

“This includes wanting stronger safeguards against the exploitation of Indian migrants who come here for study, like we saw not long ago.”

She said Labour would review the full details before deciding whether to support the legislation.

“Signing a free trade agreement if you don’t have the majority support in Parliament – and, at this point, they don’t – is irresponsible and could damage our international reputation,” she said.

Mahesh Bindra, former New Zealand First MP and chair of the New Zealand Bharat Chamber of Commerce and Industry, said the agreement would be “tremendously beneficial” but acknowledged debate was inevitable.

He said he understood concerns raised by Foreign Minister Winston Peters around immigration settings.

“His view that immigration should not be treated as an opportunity to bring in people we don’t need has some merit,” Bindra said.

“New Zealand needs migrants, but we need skilled migrants that the country requires, not mass migration or people using New Zealand as a stepping stone to other countries.”

ACT MP Parmjeet Parmar said a free trade deal with India is an exciting prospect for both New Zealand and the Indian community.

“Such opportunities go beyond individual benefit,” she said.

“Increased trade enables businesses to grow, lowers costs and opens new markets for Kiwi exporters, supporting jobs, lifting incomes and creating opportunities across the country.”

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand