The India-New Zealand FTA comes at a time when the South Asian nation narrowed its trade deficit significantly to $24 billion in November from $41.7 billion recorded in October.
Weakening rupee could inflate import bills and reverse deficit gains; ongoing dumping threatens domestic production; rising non-oil non-gold imports sustain imported inflation pressures. Meanwhile, the uncertainty that looms over the US-India trade deal timeline remains an overhang.
On the other hand, Tamil Nadu CM M. K. Stalin said the high US tariffs are causing “irreparable damage” to businesses in the region, whilst urging Prime Minister Narendra Modi to urgently seek a trade deal with Washington to protect Tamil Nadu’s economy, describing the situation as an “escalating crisis” that is pushing many small and medium enterprises to the “brink of collapse”.
