Gaurav Sharma
Auckland, October 11, 2024
Deputy Prime Minister Winston Peters has remained steadfast in his commitment to enhancing trade ties with India in his dual role as Foreign Minister.
“India is a significant global actor with a role to play in securing a stable and prosperous Indo-Pacific,” Peters told delegates at the New Zealand Bharat Chamber of Commerce and Industry (NZBCCI) launch in Auckland in September. “It is on track to become the world’s third-largest economy in three years by 2027.”
Private Sector Involvement
Yet private business groups might be in a better position to unlock the doors to the Indian market, becoming a key tool in the government’s short- to medium-term trade goals.
NZBCCI is a trade association chaired by former New Zealand First MP Mahesh Bindra that aims to build trade relationships between the two countries “one business at a time.”
Peters acknowledged more work was needed at senior levels to improve relations with the South Asian trade giant.
“A key focus in our foreign policy reset detailed in May this year is on India,” Peters said. “We have made high-level contact with India a top priority in the first year of our government and are committed to maintaining the high tempo of bilateral engagements, including at senior leadership levels.”
The trading profile of both countries needed to be diversified, Peters said, suggesting the two countries scrutinise the state of things “product by product, deal by deal, state by state and industry by industry.”
Bindra wanted his association to take advantage of the strategic trade realignment.
“NZBCCI hopes to aid this government push by upping business-to-business engagements between our two countries, for which we are signing an MoU with the Gujarat Chamber of Commerce and Industry today as part of our launch,” Bindra said at the entity’s launch.
“We will be signing MoUs with other state and regional associations soon and aim to fill the gaps we have identified in business networking,” he said.
“It is time to shift the focus away from Delhi and Mumbai, and directly engage with individual states and districts in India.”
Invest in India
Indian High Commissioner Neeta Bhushan highlighted some of the trade obstacles she had observed during her two-year tenure in Wellington.
“Businesses often ask how to enter the Indian market and my advice to them is, Go to India, make connections in India and invest in India,” Bhushan said.
“It is important to look beyond the metros and target the second-and third-tier centres such as Ahmedabad, Pune, Indore, Lucknow, which are becoming the new engines of economic growth in India.”
A second organisation that sought to bridge the trade divide was launched by a Kiwi-Indian trio on September 25, 2024.
Gurdeep Talwar, Co-Founder of Ethnic Arts and Trade Foundation New Zealand, said Small and Medium-sized Enterprises (SMEs) were often overlooked in any trade discussions between countries.
Talwar said the foundation would foster cultural connections, which in turn created pathways that led to opportunities for small businesses on both sides.
However, he stressed that the group’s focus was not limited to India.
“The initiative is designed to encourage broader participation from diverse ethnic groups,” he said. “Our focus is not limited to a single country, [rather] aim to highlight the vast opportunities for import and export across various destinations that often go unnoticed.”
Existing players
Before the recent launches of trading business bodies, the India New Zealand Business Council (INZBC) and the India New Zealand Trade Alliance (INZTA) had historically promoted trade between India and New Zealand.
INZBC took a business delegation to India in September to participate in the annual 2024 World Food India expo.
By comparison, INZTA has not reported any activity in the past two years.
Michael Fox, Former Chair of INZBC, said earlier this year that “it is important the government continues developing a relationship with India.”
New Zealand’s two-way trade with India in 2023 was worth more than $2.76 billion, with exports reaching $1.31 billion.
“We can do more … obviously in trade, but also in the defence sector,” Fox said. “Also, doing more together in the Pacific to lift the region up. We can also collaborate in the space industry.”
Trading places
A Cabinet paper released by the Foreign Ministry in December 2023 highlighted the challenges the coalition government faced in sealing a free-trade agreement with India.
To overcome those, New Zealand needed to foster regular dialogue with India, particularly at senior political levels, and should cooperate with India in areas of mutual interest, the paper said.
India is currently New Zealand’s 19th-largest export market, accounting for 1% of all exports shipped abroad.
New Zealand provides just 0.1% of India’s import market and is ranked 75th on the list of the South Asian nation’s trade partners.
“There is scope for us to significantly lift this performance,” the Cabinet paper said.
“There are few markets over the coming decades which offer a greater growth at scale opportunity for New Zealand business than India, as we build our economy, grow our trade and diversify our export markets.”
Gaurav Sharma is a Senior Journalist at Radio New Zealand. The above Report and pictures have been published under a special agreement with www.rnz.co.nz.
