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

 

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

The Nation: Call For Cross-Party Auckland Housing Plan

Penny Hulse calls for cross-party accord on Auckland housing because “it’s too important to score political points on”. More>>

ALSO:

Flu Season: Overcoming Vaccination Reluctance

While research shows that 40% of New Zealand businesses offer free or subsidised flu vaccinations to employees this time of year, HR professionals say persuading staff to participate is the biggest challenge. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news