India and New Zealand today agreed for an early commencement of Free Trade Agreement (FTA) negotiations subject to the approval process of the two countries. In a bilateral meeting today, union commerce minister Kamal Nath and New Zealand trade minister Tim Groser noted that the Joint Study Group (JSG) report demonstrates considerable potential to substantially develop the bilateral trade and economic relationship further, which could be significantly enhanced by the FTA, said a PIB release.
During the interaction, Nath informed Groser that during 2007-08, India's exports to New Zealand was valued at $159 million and imports from New Zealand were US $336 million taking the total trade to around $0.5 billion. Nath added that in first seven months of the current financial year, the bilateral trade has already reached $394 million, registering a growth of 40 per cent.
Major items of India's exports to New Zealand are gems & jewellery, medicines, textiles, iron & steel products, tyres and parts of aeroplanes/helicopters. Major items of New Zealand's exports are coal, wool, wood, metal waste/scrap, and raw skins/hides.
FDI inflows from New Zealand to India have been US $16.8 million. This investment has been mainly in power, food processing industries and computer software/hardware sectors. Presently, CMC, Mahindra and HCL Technologies have a presence in New Zealand market. Dr Reddy's Laboratories is also in the process of making an investment in New Zealand.