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Source: Reuters -
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The doors could be opening on New Zealand's trade with one of the world's fastest growing economies, India.
The government has announced plans for a Free Trade Agreement (FTA) with India, which could be worth billions despite the global downturn.
New Zealand and India have always enjoyed a healthy rivalry on the cricket pitch and now the free hits could sit alongside free trade.
Foreign Minister Tim Groser is currently in India, where he and his counterpart have agreed to launch free trade negotiations.
"I think it's great news for New Zealand. India's a growing and significant market for New Zealand. While it's only our 20th largest market at present, the potential there is fantastic," says Paddy Marra of the India-New Zealand Business Council.
New Zealand already exports timber and coal to the world's second most populous country.
At the moment New Zealand's exports to India are worth around $US350 million a year. Experts say under an FTA that figure could double.
Farmers would be one of the first sectors to benefit.
Don Nicolson of Federated Farmers says anything that's grown on a farm New Zealand can send to India.
But he says his "gut feeling" is that the sheepmeat industry would have some potential gain to make out of the Indian market just from the sheer size of it.
And that's welcome news in the current economic downturn.
"India is one of the few economies that is not suffering decreasing growth rates. They're actually still growing, mainly because they have a very large internal economy," says Marra.
If a deal is struck, it would follow the FTA with China that came into force last October, estimated to be worth $280 million a year.
Talks are also underway with the United States and Pacific nations.
Negotiations with India are expected to start later this year, ushering in a new era of friendship between the two sides.
