India could soon be the world’s third biggest economy – NZ needs to build the trade relationship urgently
Currently the fifth largest global economy, it is predicted to become the third largest by 2030.
- Currently the fifth largest global economy, it is predicted to become the third largest by 2030.
- It is expected India will contribute 15.4% to global economic growth this year, second only to China.
- Prioritising our trade and economic relationship with both countries should be a key goal for New Zealand.
- As of December 2022, India ranked 16th among New Zealand’s trading partners, accounting for a little over 1% of our total trade.
Building partnerships
- The framework paves the way for a long-term comprehensive economic partnership (CEP), which goes beyond tariff reduction and trade in goods.
- New Zealand already has a regional comprehensive economic partnership with a number of countries in the Indo-Pacific region.
- A CEP thereby creates opportunities for New Zealand exporters to get their products and services into regional supply chains.
Increasing connection and diversity
- But to achieve this, the two countries would need to establish mutual recognition of qualifications and identify opportunities for training and development across key service sectors.
- COVID’s impact on global supply chains and the subsequent production delays highlighted the importance of economic risk diversification for sustaining our long-term growth.
- These go beyond agricultural product exports and include forestry, agricultural and financial technology, education, digitisation, traditional medicines and renewable energy.
Playing catch-up
- Australia has already made significant moves to build its economic and cultural relationship with India.
- And, Deakin University and the University of Wollongong (UOW) are set to open foreign campuses in India.
- Other countries are also rapidly taking advantage of India internationalising its education sector under the 2020 New Education Policy.