India-New Zealand FTA may double bilateral trade in 2-2.5 years: BRICS Chamber chief

New Delhi, October 20 (IANS) India’s annual trade with New Zealand could double in two to two-and-a-half years, well ahead of the five-year target, following the implementation of the India-New Zealand Free Trade Agreement (FTA), BRICS Chamber of Commerce and Industry Chairman Harvansh Chawla said on Tuesday.Chawla said the agreement would make a significant difference to bilateral trade, although its impact may take six months to a year to become visible. India’s current annual trade with New Zealand stands at around $2.8 billion, and the target is to double it over the next five years.''As I mentioned, I believe our target of doubling trade within five years could be achieved in just two to two-and-a-half years," Chawla said."I also believe that, in the coming years, India and New Zealand will become very important trading partners for each other. New Zealand will be important for India, and India will be important for New Zealand," he told IANS.He said the expansion in bilateral trade could also create employment opportunities as businesses grow and new factories are established.''I believe that as our trade doubles, employment will also increase. New factories will be set up and businesses will expand. For instance, a company with a turnover of Rs 100 crore today could see it rise to Rs 125 crore. This will have a positive impact on everyone," he stated.Highlighting the need for government support to ensure that the benefits of the trade agreement reach ordinary citizens, Chawla said exporters needed better access to affordable financing and dedicated support schemes."Indian traders currently need cash the most. The government should introduce schemes specifically to support exports. Schemes already exist, but they need to be expanded," he said."Interest rates on export financing must be reduced. Traders may receive orders, but they need funds to execute them, which largely come from banks. Banks should introduce more flexible schemes for exporters with lower interest rates," he added.