OTR: Talent, Trust, and Timing: The NZ-India FTA

As Piyush Goyal, India's Minister of Commerce and Industry visits New Zealand this week for continuing conversations around a possible NZ–India Free Trade Agreement.

Economic analyst and author Pranjal Sharma speaks to the Asia Media Centre about India’s shifting trade strategy, the role of talent and innovation, and why trust and long-term partnership will matter just as much as market access.

Pranjal Sharma is an economic analyst and author who examines how technology, globalisation and shifting geopolitics are shaping the future of growth. With a background in Economics and postgraduate studies in Media from the University of Westminster in London, he has spent more than 30 years working across journalism, policy and advisory roles.

Pranjal Sharma is an economic analyst and author. Photo credits: supplied/amc

He has been closely involved with the World Economic Forum, serving on its Global Agenda Council for eight years and continuing as part of its Expert Network. Pranjal also advises organisations and non-profits working with emerging technologies to support sustainable and inclusive development.

His latest book, The Next New, explores the rise of the Fifth Industrial Revolution and how it is transforming industries. His earlier books, India Automated and Kranti Nation, were among the first to document the impact of automation and digital transformation in India. He is based in New Delhi.

This interview builds on our earlier opinion pieces, and reports by our intern and an AMC podcast conversation exploring the future of NZ–India ties.

1. Minister Piyush Goyal is visiting New Zealand this week for talks on the proposed FTA. What does this visit signal about where the negotiations stand and how serious India is about concluding the deal?

India has initiated FTA talks with all its partners in right earnest with clear objectives of rapid conclusion. India is keen to move fast and seal FTAs to counter the rising turbulence in global trade and supply chains.

2. India has been signing trade agreements at a faster pace in recent years, including with Australia and the UAE. What do you think is driving this new momentum and confidence in India’s trade policy?

India has always maintained a multi-alignment policy. India has strong trade and investment linkages with nearly all regions of the world. The decline of WTO and the multilateral trading system led to India’s focus on FTAs. The recent geopolitical uncertainties have accelerated the momentum in the trade policy.

The underpinning of the strategy is simple. India does not want to be over reliant on any single country for trade and investment. Over reliance on any country for a specific good or service can prove to be a weakness. In some cases, such over reliance can also be weaponised for geo-political goals. A wider range of FTAs will ensure that India is able to de-risk its trade basket across many partners.

3. How does New Zealand fit into India’s broader trade and Indo-Pacific strategy? Is this agreement more about economic opportunity or about building trusted partnerships in the region?

India is looking at strengthening partnerships in the Indo-Pacific. Australia and New Zealand are important economies in the region. The relationship that India seeks is comprehensive which includes economic and security linkages. India has been investing in its shipping and ports infrastructure to play its rightful role in regional trade. A strong partnership with India will benefit New Zealand as well. Reports suggest that the New Zealand economy is shrinking. It will be important for NZ to explore opportunities with India to boost its own growth path.

4. What are India’s main expectations from this deal? Are there specific sectors or reforms where India sees real potential for growth through collaboration with New Zealand?

There are apprehensions that NZ is losing its talent to Australia and its population is declining. It would be important for NZ to work with India and create exciting opportunities for its young professionals.

 5. Agriculture and dairy have long been sensitive issues. How do you see both countries managing these challenges while still moving the conversation forward?

India has a strong agriculture and dairy sector. Millions of farmers depend on agriculture. An unfair import agreement that hurts their interest will not be acceptable for India. Even India improves market access for agri and dairy, it will expect its partner to also allow market access. While NZ is strong in certain products, India has the option of exporting agri products to NZ as well. However, NZ is a relatively small market for Indian products. So the negotiators on both sides will in my opinion have to balance market access in one sector with opening up other sectors.

In the past legacy economies in Europe and North America have expected India to allow market access for agricultural products while placing non-tariff barriers on Indian exports to their own markets.

These economies subsidise their farm sector but have often questioned the same policies of India.

6. From India’s side, what needs to happen domestically — in logistics, digital trade infrastructure, or policy reform — for this FTA to deliver meaningful benefits?

India is widening its basket of trade and NZ will be an important element. However, the onus of the benefits must be on both countries. India investment in trade and economic infrastructure has been accelerated in the last decade.

7. You’ve often written about technology and automation reshaping economies. How can trade agreements like this one reflect those shifts and prepare both countries for the future of work?

India has a vibrant and growing entrepreneurial ecosystem driven by young startups. India has opened up sectors like defence and space for young start ups to collaborate with the government. NZ has an opportunity to work with the India start-up ecosystem to create products and services for the world.

8. Where do you see the biggest opportunities for collaboration beyond goods — perhaps in areas like digital trade, renewable energy, education, or innovation?

Talent mobility will be an important area of collaboration. India and NZ will have to explore new avenues where young talent can move across both economies and enrich each other. Education sector of NZ can contribute to India’s growing need for high quality learning.

 9. What can New Zealand do to build deeper trust with India and ensure this deal becomes a genuine partnership rather than a market-access negotiation?

For its own interest, NZ should consider the diversifying its trade partners. It remains highly dependent on 5 countries for its trade. Additionally, NZ should work with India on regional security on its own terms. Maritime and blue economy linkages between India and NZ would benefit both countries. On the other hand India could learn a lot from NZ regarding eco-tourism and nature based businesses.

 10. How can India make sure that smaller businesses and entrepreneurs also gain from this FTA, not just large corporations?

In most FTAs India has ensured that small producers are not at a disadvantage. India is actively working to ensure that small business do not suffer non-tariff barriers. At the same time it is actively working with small businesses to improve their product quality standards to ensure improved market acceptability.

11. Finally, what would success look like to you — not in figures, but in the kind of economic relationship India and New Zealand could build through this agreement?

I think that NZ will require a fresh perspective and bold approach to revive its growth. Partnerships with a large economy like India will be an important element for NZ. India would also be keen to work with NZ as a reliable partner in the Indo-Pacific especially on security and maritime matters.

-Asia Media Centre

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