India’s Prime Minister Narendra Modi has said that his country was keen to establish a ‘Comprehensive Economic Cooperation Agreement’ but stopped short of mentioning anything about a Free Trade Agreement (FTA).
Speaking to the media at Hyderabad House in New Delhi on October 26, 2016 soon after conclusion of official level talks of the two governments led respectively by him and New Zealand Prime Minister John Key, he said that the two sides “agreed to continue to work closely towards an early conclusion of a balanced and mutually beneficial Comprehensive Economic Cooperation Agreement.”
Key Words
“Balanced and mutually beneficial’ are the key words that would dominate renewed talks between the two governments, notably the chief negotiators.
Mr Key is known for his positive approach to issues and more importantly his optimistic vision over India but New Delhi would not commit to a pact that would compromise its farming sector that includes agriculture and diary industries.
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Trade and Investment
Mr Modi said that trade and investment were important issues that were discussed at the official talks.
“We both recognised the need for greater economic engagement to effectively respond to the growing uncertainties in global economy and agreed that expanding business and commercial ties should continue to be one of the priority items of our partnership. I am sure that the large business delegation accompanying Prime Minister Key will not only witness first-hand the investment opportunities on offer in India’s growth story. Their interactions will also build new commercial partnerships between our two countries. I would like to mention food processing, dairy and agriculture, and related areas in their supply chain as some of the areas of particular potential for bilateral cooperation. New Zealand’s strength and capacity in these sectors can combine with India’s vast technology needs to build partnerships that can benefit both our societies,” he said.