As we congratulate the India New Zealand Business Council (INZBC) on its Silver Jubilee, we welcome its enthusiasm in organising conferences and business meetings. One such will be held on July 8 and we look forward to promoting it with a balanced analysis for our readers (see Businesslink).
But meetings alone do not accomplish the desired objective, which in this case, is to create avenues for New Zealand companies to benefit from the existing and emerging potential in India.
The question is, “How do you do business in a country that spell diversity between States or regions, each offering its own language, business practices and taxation rules?”
Addressing specifics
A viable answer to this question has often eluded those who seek it for there is no single organisation that has the expertise to show Kiwi businesses the right path to the right market. There is therefore a need to find methods that are pragmatic, methods that provide specific solutions to specific challenges and most importantly, methods that employ the right channel to connect with the right people.
There is no single template that can fit the Indian scenario or an umbrella that can cover that country’s enormous horizon.
Notwithstanding its historic relations, New Zealand’s engagement with India has been sparse and somewhat unenergetic. Despite signing memoranda of understanding covering a wide range of activities, trade relations between the two countries remain at just $1 billion, which pales into insignificance compared to with China, which is expected to rise to $20 billion next year.
Enormous resources
While the two-way trade between New Zealand and China began to take big strides after a Free Trade Agreement (FTA) was signed in 2008, there is no such immediate possibility in sight with India. Talks that began in 2007 continue to remain stuck on issues relating to agriculture and related products with India not so ready to concede tariff cuts. There should therefore be a better, smarter way to capitalise on the wealth of potential that India offers with its human and material resources.
The Economist conceded that for business, India is seen as the next big thing and “No big international company can do without an India strategy.”
Some multinationals eye the country and see a vast domestic market that is booming.
Multinationals present
We have, in the past issues, carried reports of a host of Fortune 500 companies establishing their presence in India, with some of them on a course of rapid expansion.
Even companies such as Google and Rolls Royce, who are conservative in their approach to opening overseas offices, could not resist the temptation that India offered.
If everyone is rushing to India, what is holding back Kiwis? After all, Indians have been here since at least 1880s, acting as a bridge between the two countries; New Zealand has established its trade offices in New Delhi and Mumbai; Fonterra has a successful joint venture in Bangalore and most important of all, there is a genuine desire to do better.
New Zealand should not miss the opportunities now available for investors, traders, educationists, consultants, engineers and for businesses. There must be a conscientious effort to examine the potential and foster bilateral relations at the governmental, commercial, social and individual levels.
