Fran on India FTA
Fran O’Sullivan writes:
Bold ambition and fearless execution – that’s what it has taken to get intense bilateral negotiations between India and New Zealand finalised so a trade deal could be announced just before the country broke for Christmas.
Bold ambition by Prime Minister Christopher Luxon who faced down his detractors and pledged he would get an agreement in place during his Government’s first term in office.
Fearless execution by Trade Minister Todd McLay, who the PM empowered to deliver the deal and who brought it home within nine months of Luxon’s four-day visit to India earlier this year.
The relationship with India was regarded as almost broken under the previous Government.
Even back in 2018, Fonterra was forecasting that over the next seven years, the demand for dairy from Indian consumers is set to increase by 82 billion litres – seven times the forecast growth for China.
The country’s young population was looking to level up its dairy consumption with new products that met with their expectations of higher quality and nutrition.
There are opportunities now to invest in food manufacturing, infrastructure – including digital services and more to meet market demands.
One of the more interesting aspects is the ability to form joint-venture manufacturing facilities in India for exporting product into third markets.
Chinese dairy firms have exploited a similar regime in New Zealand to produce product for export to South East Asia.
Lots of opportunitiies.
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