Photo source: Flickr
India’s economy has shown remarkable resilience and growth in recent years. In the fiscal year ending March 2024, India’s GDP growth surprised analysts by reaching 8.2%, surpassing earlier estimates.
The country’s economic outlook remains strong, with projections indicating growth between 7.6% and 7.8% for the current fiscal year. This robust economic performance has positioned India as a key player in the global economy, with its GDP expected to nearly double to over US$7 trillion by fiscal 2030-31.
Recent developments suggest that long-anticipated trade deal negotiations between India and New Zealand may soon resume. Foreign Affairs Minister Winston Peters hinted at the possibility of announcing the start of negotiations, expressing optimism about advancing relations between the two nations.
This comes after previous talks, which began in 2010, stalled after five years. In April 2024, India and New Zealand held discussions during the 11th Joint Trade Committee (JTC) meeting to boost their bilateral relationship.
Both countries identified significant untapped potential for cooperation and agreed to expand their trade relations, focusing on establishing a comprehensive economic framework and promoting collaboration in agriculture, food processing, forestry, and pharmaceuticals.
Challenges and Strategic Importance
There is enthusiasm for increased trade, but several challenges need to be addressed. These include market access issues, non-tariff barriers (NTBs), and sanitary and phytosanitary (SPS) measures on products such as grapes, okra, and mangoes.
Both countries have agreed to resolve these issues through constructive dialogue within the existing JTC framework.
Moreover, India’s rising economic and military power has increased its strategic importance on the global stage. In 2023, India’s military expenditure reached $83.6 billion, making it the fourth-largest global spender. This growth in both economic and military spheres has positioned India as a crucial partner for countries like New Zealand. With ongoing diplomatic efforts and a clear commitment to building deeper connections, both nations stand to gain from a strengthened strategic partnership in the coming years.