INDIA AND NEW ZEALAND: GETTING ONTO THE FRONT FOOT

Image Credit: Patrick Case, Pexels

A 50 person business delegation is about to depart for India.  It follows a major report by the India New Zealand Business Council (INZBC), published in April. The report took a critical look at the relationship, finding a number of shortcomings and advocating greater commitment and focus.  The publication has been a catalyst to explore new ways of approaching the world’s most dynamic and populous market.

Destination Delhi

The business delegation is a joint initiative which has been planned by five business organisations, including NZIBF/TradeWorks, with strong support from the New Zealand High Commission in Delhi and NZTE in Mumbai. A long-term “New Zealand Inc” approach will be essential to boosting bilateral trade and investment because government support really can open doors in the Indian market.

At first sight, two-way bilateral trade seems disappointingly low at around $2 billion. Even so, a number of New Zealand companies based in India have steadily built market positions in high value products over a number of years. A country of India’s size means there are a range of opportunities to explore. Several visits I’ve made to India in the last year convince me that this is a relationship of great strategic importance for New Zealand and that there are opportunities available.

Tiger, tiger

The magnificent Bengal tiger is India’s national animal and its grace, agility, strength and power provide an appropriate metaphor in 2023! No large market matches India’s economic growth, which could exceed 6 percent this year, despite a sluggish global economy. India’s young, talented and IT-savvy diaspora are a gift to a country like New Zealand with so many sectors crying out for skills. India is an economic partner we cannot overlook.

There is so much for New Zealand exporters and investors to learn before they can fully understand how to best target their efforts. What is exciting about recent business initiatives is the way exporters and investors are starting to think more strategically; building trust and deeper understanding of the opportunities, rather than a purely transactional “one-off” approach to making a sale. Sales are always possible in a market like India; establishing a sustainable long term business is much more challenging.

FTA or not

Australia’s recent “early harvest” FTA piqued envy here, even if it excluded key products of interest to us like dairy, sheepmeat and apples.  The delegation is not setting out with a specific agenda in mind to achieve an FTA. We have been down the trade negotiation path with India. While we will always be interested in a comprehensive agreement, there still is much we can achieve in the absence of an FTA.

Despite the current low level of current exchange, New Zealand has much to offer. Becoming an efficient food producer, achieving more intensive land use, educating a population where half of all people are under the age of 25, and reaching world leadership in green energy are all strategic priorities for the Indian government. Good opportunities exist for us in agriculture, agritech, education, fintech, forestry, horticulture and renewable energy sectors.

New Zealand businesses are travelling to India to explore partnerships for the long term. We’ve been watching each other and playing cricket for decades: now is the time for exporters and investors to get their weight onto the front foot, drive smoothly and follow through!

This post was prepared by Stephen Jacobi and Glen Candy.  A longer version of the article was published in the NZ Herald on 17 August 2023.