Venkat Raman
Auckland, April 3, 2024
As the new Coalition government steps up its engagement with India, the Auckland Chamber of Commerce is keen to participate with its members and Small and Medium enterprises (SMEs), Chief Executive Simon Bridges has said.
“As the international gateway, Auckland stimulates the New Zealand economy and as the Organisation that engages with the business community, the Auckland Business Chamber is excited over the existing and emerging opportunities in India. We need to strategise our approach and support the efforts of the government,” he said.
Mr Bridges, who was speaking to Indian Newslink at our offices as a part of our Video and Podcast series, said that all of us have to first understand India, its government and its people and their aspirations and programmes.
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Strategic Partnership
“Trade agreements are a part of the larger engagement and will come up for discussions at the appropriate stage. Institutions such as the Auckland Business Chamber understand the country better as its members have a presence in India. It could be a small technical firm or a company in a niche market. Working with such businesses will help us to appreciate the ground realities,” he said.
Mr Bridges has been a strong advocate of better Indo-Kiwi relations in his previous roles as a Minister of the Crown and the Leader of the Opposition and his visits to India have strengthened his resolve.
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“I am very happy that the new Coalition government is determined to improve ties with India and the recent visits of Foreign Minister Winston Peters and Trade Minister Todd McClay to New Delhi have set the right tone. India’s High Commissioner to New Zealand Neeta Bhushan has also been engaging with the New Zealand government, businesses and the Indian community. Everything points to a brighter future in New Zealand-India relations,” Mr Bridges said.
He said that he is in regular contact with Mr McClay and Ms Bhushan and is positioning the Auckland Business Chamber to be more proactive with all the countries which have bilateral relations with New Zealand.
“We realise that in order to grow more than just incrementally, the Auckland Business Chamber as a professional organisation must work together with all businesses. We are exploring possibilities for business growth with the Indian, Chinese, Filipino and other communities. We find that smaller events with modest entry fees will be more effective in bringing businesses together than fancy programmes that charge between $200 and $300. These are hard times for businesses and hence we must find innovative ways of promoting their interest,” he said.
The Chamber Route to India
Mr Bridges is convinced that professional organisations such as the Auckland Business Chamber have the right potential and membership to build relationships with India.
There is a growing feeling among the Indian business community in New Zealand that the Chambers of Commerce are better equipped to establish connectivity between entrepreneurs, investors, traders and professionals in both countries.
Mr Bridges recognised that the Chamber should tap the expertise of people who are ‘actually’ doing business with India as New Zealand companies and not just those who claim to have ‘connections.’
We have examples of such leaders with proven records in the Forestry, IT, Nutraceutical and Business Consultancy industries whose experience can be useful in official and Chamber talks to promote commercial and trade ties with India.
The National Party government by John Key had set the stage for better political, economic, social and cultural relations with India, which were unfortunately thrown to the backburner under the Labour government from 2017-2020. As we have reported earlier, statements by former Foreign Minister Nanaia Mahuta (“A Free Trade Agreement with India is not a priority to the Labour government”) have ruptured relations. It is now time to retrace the steps and recognise the growing importance of India.
Make in India and FDI
Ms Bhushan is promoting ‘Make in India,’ an initiative launched by Mr Modi soon after he became India’s Prime Minister in 2014. The Programme, which aims to make India a manufacturing hub of the world is encouraging major industrialised nations such as the USA, United Kingdom and countries in Europe to look at India with its democratic ideals and open market policies as the ‘best alternative to China.’
“Our government has now in place in One-Stop, One-Window Clearance System to approve foreign investment across industries. This has helped major companies to operate in India without hassles, adding to the value of Foreign Direct Investment. We have moved from Red Tape to Red Carpet,” Ms Bhushan said.
According to the Make in India Website, the total FDI inflow during the financial year 2022-2023 was US$ 70.97 billion. Total FDI receipts from April 2000 to March 2023 were $US$ 919 billion, of which the total inflow since the Modi government came to power was US$ 595.25 (accounting for 65% of the total).
The website said that the top five sectors that received the highest FDI equity inflow during the 2022-2023 financial year were the Service Sector (Finance, Banking, Insurance, Non-Finance/Business, Outsourcing, R&D, Courier, Technology, Testing, Trading and Analysis), Computer Software and Hardware, Telecommunications and Automobile Industry.
Mr Bridges said that New Zealand should be realistic in its expectations with India.
“We have to develop a deeper and more meaningful relationship with India before even thinking of a Comprehensive Free Trade Agreement. As a strong and emerging world leader, India follows a reciprocal approach. I am convinced that there is much work to do and it should be a collective effort. We in the Auckland Business Chamber are working with the government, the High Commission of India in Wellington and the business community to have better economic and commercial ties with India,” he said.
Mr Bridges said that New Zealand missed the bus on many occasions in the past in its efforts to boost the Indo-Kiwi trade.
“It is a large bus that is moving fast. This is a great dynamic movement and we should not lose momentum in our efforts. I am confident that the incoming High Commissioner to India (Partick Rata) will also help in accelerating the process,” he said.
