New Zealand’s support for India during its global security crisis could be key to securing a Free Trade Agreement.
In addition to a new trade deal signed with the Gulf Cooperation Council (GCC), including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, New Zealand currently has free trade agreements covering over 70 countries.
These agreements have supported trade and economic partnerships across various regions, offering market access and reduced tariffs for New Zealand’s goods and services.
However, an FTA with India, the world’s fifth-largest economy, has eluded New Zealand since it was first mooted in 2007.
Jay Changlani, a chartered accountant, CEO of Orb360, said in his view New Zealand’s support in addressing areas such as India’s international security concerns and providing work opportunities for their population can be leveraged to help gain access for many other NZ products.
He said the focus on including agricultural exports such as dairy has been counterproductive in our efforts to secure an FTA with India.
“India is the world’s largest milk producer - they do not need or want New Zealand’s dairy products more than we need theirs. We need to accept this reality and move beyond a transactional trade agreement by taking dairy off the negotiating table to focus on how we can provide solutions to systemic problems faced by this nation,” said Changlani.
“India prefers partnerships that reflect broader bilateral cooperation rather than purely economic deals. Their trade agreement with Australia resulted from their geo-political support and investment in India’s transition to clean energy technologies.”
He also suggested considering ways to use India’s workforce to improve the productivity of both nations. Labour utilisation has been a key issue for India, and there was a significant opportunity to look at how New Zealand can create mutually beneficial growth opportunities for both nations.
“Many Kiwi organisations have looked at outsourcing work to India but encountered barriers to implementation. We have created a model for professional services firms where each of our New Zealand-based accountants is paired with a counterpart in India who takes over from them at night to complete the work.”
This system has allowed the business to spread fixed costs across a more extensive client base and enable faster turnaround times, increasing efficiency by up to 20 percent. Changlani believed this approach could be adopted by other NZ firms that are at capacity and turning away new clients.
Changlani, also an international tax specialist, said that NZ’s non-resident withholding taxes under the double tax agreements between India and New Zealand are high by global standards, and a review was needed to help recruit talent and bring fairness into the tax system.
“This tax structure can deter high-value talent from choosing New Zealand over more tax-friendly destinations. Reducing these barriers should be a priority in any broader strategy to strengthen our economic ties with India as a key talent market.”
He added New Zealand needed more IT specialists in fields such as blockchain and QR code payments and needed to do more to attract expertise from these sectors or risk falling further behind its international competitors.
Once New Zealand has established a foundation for a viable relationship with India, it can then consider trade opportunities. Clear agreements regarding intellectual property rights and profit-sharing will be necessary. New Zealand could contribute to developing India's more sustainable and resilient global food system.
“While there is little demand for dairy products as such, New Zealand excels in agrotechnology, and with India facing increasing pressure on its natural resources due to population growth and climate change, there is scope to offer high-value agrotechnology scientific expertise in areas such as organic farming and low-emission agriculture.”
