New Zealand, India agree to study free trade accord

New Zealand has agreed to study the potential for a free trade agreement with India, Trade Minister Phil Goff said today.

The study, agreed in principle with Union Commerce and Industry Minister Kamal Nath, will consider what a trade agreement could mean for the two countries, Goff said in a statement. It will be progressed at a joint trade commission meeting planned for September, he said.

India, Asia's fourth-biggest economy, plans to increase its exports by 20 per cent annually through 2010 to boost jobs and incomes among its 1.1 billion people. It was the second fastest growing market for New Zealand exporters in the year ended February, Goff said.

"India is becoming an increasingly important market and trading partner for New Zealand," Goff said.

"Growth in tourist and student numbers from India are also making a significant contribution," he said.