Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ to dust off India FTA following Modi win

NZ to dust off India FTA following Modi win

May 19 (BusinessDesk) – The New Zealand government will dust off the stalled initiative for a free trade agreement with India, following the election of a new Indian government promising an economic reform agenda more likely to be welcoming of foreign trade and investment.

The Bharatiya Janata Party, led by Narendra Modi, won the Indian general election over the weekend, becoming the first government in a generation to gain a clear majority without requiring coalition partners.

Modi is a former governor of the 60 million-strong state of Gujarat, where he pursued a combination of economic liberalisation and foreign direct investment initiatives that have seen the state become the hub for 25 percent of Indian exports.

Formal negotiations for an FTA with India began in 2010 after a Prime Ministerial trade mission to the world’s second most populous country after China, but the talks stalled amid Indian domestic political opposition to the presence of foreign-owned firms in the food and fast-moving consumer goods sectors.

Prime Minister John Key said at his post-Cabinet press conference today that he had sent a message of congratulation to Modi and that the government was “hopeful we can reignite the FTA.”

“We will be taking that up with the Indian government at the appropriate time.”

In an editorial today, The Asian Wall Street Journal warned the Modi administration would need to “build ideological consensus to reverse India’s deep-rooted distrust of markets.”

“If Mr Modi pursues industrial policy rather than pro-market reforms, he may revive growth over the next few years,” the AWSJ says. “But he would also create a web of crony capitalism that leads back to stagnation in the longer term.”

While still growing at around 5 percent annually, the Indian economy has under-performed against expectations and is failing to create sufficient jobs for the 12 million new workers entering its labour market annually.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news