Trading smart: On the India-New Zealand FTA

The India-New Zealand Free Trade Agreement (FTA) , set to come into force on October 20 , is a good example of why India is right in simultaneously pushing for trade deals with smaller trade partners along with the major global economies. On the face of it, it would be easy to dismiss the $1.1 billion of bilateral goods trade between the two countries as being less than 1% of India’s total goods trade. A doubling by 2030, as envisaged under the deal, is still a minuscule amount. Yet, trade is not simply a macroeconomic indicator. It is also a source of livelihood for lakhs of businesses, nearly half of which are micro, small, and medium enterprises. These exporters need all the help that they can get in the current trade environment.