India and RCEP
India is one of the largest and fastest growing economies in the world. The Regional Comprehensive Economic Partnership (RCEP) presents significant opportunities for New Zealand’s trade with India.
India at a glance
India’s rapid population and economic growth make the country an attractive market for New Zealand exports:
- India’s US $2.7 trillion economy is the second fastest growing major economy in the world, increasing at a rate of 6 percent (after China at 6.1 percent).
- Powered by a rapidly expanding middle class, the domestic market and the rise of consumerism drives Indian economic growth.
- Per capita income in India (by purchasing power) is currently at a similar level to China’s when the New Zealand-China Free Trade Agreement entered into force in 2008.
- India has the world’s second largest population after China at 1.3 billion. India’s working age population consists of over 903 million 15-65 year olds.
- India’s population will likely surpass China’s (1.4 billion)in 2027, making it the world’s most populous country.
Our current trade relationship with India
India is the only RCEP member with which New Zealand does not have a free trade agreement. However, India has long been an important trading partner:
- India is New Zealand’s 11th largest trading partner, with total trade in goods and services worth more than NZ$2.6 billion.
- Exports to India are worth NZ$1.64 billion (NZ$709 million in goods, NZ$933 million in services) with imports worth NZ$997 million (NZ$730 million in goods, NZ$276 million in services).
- Our key exports to India include; logs and wood products, travel services, fruit and education services.
- In 2018, more than 16,000 Indian students were studying in New Zealand, and 66,000 Indian tourists visited that year.
Figures are as at June 2019.