Venkat Raman
Auckland, January 15, 2025
Economic ties with India including increased trade prospects will become more meaningful if New Zealand adopts a more pronounced, long-term, participatory conversation, a popular protagonist for Free Trade has said.
Jay Changlani, Chartered Accountant and Director of Orb360, a firm that has several offices in Auckland and Wellington, said that the government should work with businesses and the Indian Diaspora to lift the bilateral relations between the two countries to a much higher level.
Mr Changlani was talking to us as a part of the Indian Newslink Podcast series, covering a wide range of subjects which he said should get the attention of the New Zealand government. Please watch his video on our website, YouTube Channel and on multiple Podcast platforms.
“From infrastructure, science and technology and innovation to education, investment and tourism, the Indian economy offers increasing opportunities for foreign investors. India is still an unexplored market for New Zealanders despite the presence of a dynamic and growing Diaspora. This has to change and we must become more proactive so that we do not miss the bus again,” he said.
With the projected first visit of Prime Minister Christopher Luxon to India (probably in March 2025), the need to understand the potential is greater today than before, he said.
New Zealand and India share a long-standing and cordial relationship, commencing with trade ties in 1950, with a full diplomatic presence established in Wellington in 1963. Over the years, both countries have built a strong foundation based on shared values, democratic governance, and mutual interests in areas such as trade, education, and cultural exchange. As the global landscape evolves, there is significant potential for enhancing bilateral cooperation between these two nations.
Winston Peters on India
Foreign Minister Winston Peters said at the end of last year, “In the past 12 months, we have seriously upped the tempo in high-level and regular political engagement with the Indian Government. This is critical to the uplift of our relationship. This has helped to build stronger connections, greater alignment and understanding, increased trust and a shared commitment to take the relationship to a new level.
“With GDP growth expected to average over 6.7% through 2030, India represents a significant ongoing opportunity for New Zealand businesses. However, there is plenty of room for growth with India currently making up just 1.4% of New Zealand’s total exports,” he said.
Mr Changlani believes that New Zealand businesses and the Indian Diaspora should become more active participants in building this new bridge of partnership with India. As a Chartered Accountant with more than 20 years of experience in accounting and forensic accounting and with business interests in India, he understands the growing potential in the world’s most populous country.
Advantage Australia
Mr Changlani drew parallels between Australia and New Zealand and described how Canberra has been able to improve its bilateral relations with New Delhi (signed in April 2022 and made effective in December that year) while total trade between New Zealand and India has somewhat stagnated at $2.83 billion.
Total trade between Australia and India was A$ 26 billion in 2022-2023, more than double from 2020-2021 (A$ 12.2 billion). The value of two-way trade in 2023-2024 was A$ 24 billion, showing a marginal decline. India’s exports to Australia grew by 14% in 2023-2024. Between April and November 2024, the total bilateral trade between the two countries was A$ 16.3 billion.
Mr Changlani said that while a good start has been made by the current Coalition Government since taking office on November 27, 2023 with meetings held between the two Prime Ministers (Christopher Luxon and Narendra Modi) and Trade Minister Todd McClay and India’s Commerce and Industry Minister Piyush Goyal (three times in New Delhi and three times at global conferences, there is much more to be done.
Tapping increased potential
“I am happy that efforts are now being concerted at various levels. This is a good time for manufacturers, investors, traders and commercial organisations in New Zealand to access the ever-growing consumer markets in India. This is also a good time for our government to provide incentives for exporters. The Free Trade Agreement has allowed the Australian meat industry to export meat at competitive prices to India. I understand that five-star hotels in India have become large customers. We should explore this possibility,” he said.
New Zealand initiated Free Trade Agreement proceedings with India by the Labour-led government in November 2007, while a similar pact was being signed with China. However, it was the John Key government that took the workings forward with a series of meetings between ministers and officials of the two countries in 2010. The project slowed down thereafter and derailed in 2022 under the Jacinda Ardern government when then Foreign Minister Nanaia Mahuta declared, “A Free Trade Agreement with India is no more a priority for our government.”
However, as Mr Changlani said, there has been renewed energy since the Coalition Government led by Christopher Luxon came to power in 2023.
“I can feel the positive energy now. Although some people doubt if New Zealand can obtain a Free Trade Agreement during the current tenure of the Luxon government, I believe that there is a possibility over the next 18 months or so. We will at least get a clear alignment of the priorities of what we can deliver together. Increased trade and a Free Trade pact will significantly impact all businesses and investors,” he said.
Stating that such painful developments must be committed to memory, Mr Changlani mentioned, textiles, electronics and pharma as bountiful sectors of engagement.
“New Zealand’s import of textile products is about $13 billion, of which just $97 million comes from India. This industry can provide a significant opportunity and we can consider increasing our purchases from India. Electronic goods and processes account for $5 billion of New Zealand’s imports of which India’s share is only $28 million.
“India’s pharmaceutical industry is a global leader in the production of generic medicines and vaccines. Known as the ‘Pharmacy of the World,’ the country is a major supplier of essential medicines and medical supplies. India’s pharmaceutical industry is known for low-cost vaccines (including the Oxford-AstraZeneca formula), Generic medicines: accounting for 20% of the global supply and much more. We should consider these sectors carefully,” he said.
